Oil prices tumbled on Tuesday with Brent crude diving to the lowest point for almost seven years, as the market was plagued by OPEC’s refusal to cut output.
In afternoon trade, European benchmark Brent North Sea crude for January delivery hit $41.05 per barrel - a level last seen on February 24, 2009.
US benchmark West Texas Intermediate for January struck USD 37.88 - which was last witnessed in August earlier this year.
The Organization of the Petroleum Exporting Countries - which pumps about 40 per cent of the world’s crude oil - decided on Friday against cutting output to raise prices.
The 13-member OPEC cartel took no action to shore up the market and observers said it appeared to be in disarray.
“The decision by OPEC members to keep oil production output at record high levels has seen oil prices plummet again,” said Sanjiv Shah, chief investment officer of Sun Global Investments.