World oil prices have tumbled today to strike the lowest levels in more than a year, hit by a markets rout that is rooted in fears over the world economy.

Oil tanked, dented by concerns over the demand outlook and a stubborn supply glut, while the dollar slid versus main rivals.

Brent and New York crude contracts collapsed as low as $57.20 and $47.84 per barrel respectively during the morning session.

"Stocks have not been the only victims of broader market misery this festive season," said Oanda analyst Craig Erlam.

"Oil tumbled ... as equities plunged into the red as investors continue to view 2019 as a challenging year for global growth."

There are also questions about the impact of a recently promised output cut by OPEC and other top producers including Russia.

"OPEC may have come to an agreement with its allies to cut production next year and rebalance markets ... but traders are clearly not convinced enough will be done," noted Erlam.

Crude prices have fallen about a third from four-year highs touched at the start of October.

"The crash seen in the price of crude oil over the past few months has arguably been the biggest story of the year," noted XTB analyst David Cheetham.

"Fears that Iranian sanctions reimposed by Washington would cause a drastic fall in output saw the market rally to its highest level in almost four years at the start of Q4, but these concerns now look badly misplaced."