Oil prices fell to their lowest level for almost six years on Wednesday amid fears over the global economy.
Brent Crude fell to $49.92, below the symbolic $50 a barrel for the first time since 2009. So far this week it has fallen more than 11 percent. US crude has slipped to $47.02.
With the prospect of deflation in the Eurozone, a slowdown in China and a growing supply glut, analysts say more falls are likely.
Nobuyuki Nakahara, a former oil executive and ex-member of the Bank of Japan’s policy board, told Reuters he expected further price falls.
“Oil prices are likely to keep falling due to slower Chinese growth and because the years of prices above $100 before the recent plunge were ‘abnormal’ historically,” he said.
“I would not be surprised if the price falls to as low as around $20… It is purely due to supply and demand. There is a ceiling for oil because high energy prices dampen economic growth,” he added.