Oil prices fall below $60 for first time since July 2009

Oil prices have fallen below USD 60 for the first time since July 2009 amid mounting evidence that global supplies are far outstripping demand.

US benchmark West Texas Intermediate (WTI) for January delivery decreased by 86 cents to USD 59.09 in Friday morning trade in Asia. Brent was also down 52 cents at USD 63.16.

On Thursday, crude prices held up for most of the day but fell by more than one dollar in the final two hours of trade. The WTI has lost around 44 percent of its value since June 2014, when it was traded at USD 103.

Market analysts say oversupplied global markets are to blame for the plunging prices.

“There just doesn’t seem to be any relief for oil prices at the moment,” said Michael McCarthy, the chief market strategist at CMC Markets in Sydney.

“The bearish sentiment is unlikely to change until the end of the year unless we see a significant drop in global production levels or a supply disruption,” he said.

Some major oil producers, including Saudi Arabia, have recently increased crude supplies, leading prices to plunge.

Many believe oil prices are being used as a political weapon against Iran and Russia.