Oil prices traded near five-year lows in thin year-end trade today, as analysts predicted further bearishness in the market due to rising US production despite a global supply glut.
West Texas Intermediate for February delivery fell 49 cents to $53.12 while Brent crude for February lost 55 cents to $57.33.
WTI closed down $1.12 to $53.61 in New York last night while Brent fell 57 cents in London to $57.88. Both contracts last traded at those levels in May 2009.
Oil has shed about half its value since June, attributed to slowing growth in China and emerging-market economies, a recession in Japan and a near-stall in the euro zone.
On top of that, the OPEC oil-producing cartel last month said it would maintain output levels despite ample global supplies, in part due to cheaper oil extracted from North American shale rock.
Analysts said traders were also girding for more downward pressure stirred up by the impact of a brewing Greek political crisis, expected poor numbers on China's industrial sector, and another possible increase in US stockpiles.
The US Energy Information Administration will tomorrow release stockpiles data for the week to December 26.
