After a brief recovery oil resumed its downward slide on Thursday with the price of US crude falling below $60 a barrel for the first time in five years. The decline came as market participants digested the latest supply and demand forecasts and continued to digest the fallout from Opec’s recent decision not to cut production.
Nymex January West Texas Intermediate, the US oil benchmark, surrendered early gains to trade down $1.27 a $59.64 late in the session on Thursday, while ICE January Brent, the international crude marker, also headed south, falling 69 cents to $63.55 a barrel.
Brent dropped almost $2.50 on Wednesday while WTI lost close to $2.90 after Opec said demand for the cartel’s crude in 2015 would be the lowest in a decade and below current levels.