London: Brent crude prices sank under $40 on Tuesday for the first time in almost seven years, rocked by OPEC's recent decision to maintain oil output levels despite a chronic supply glut.
European benchmark oil contract Brent North Sea oil for delivery in January tumbled to $39.81 a barrel -- the lowest point since February 2009.
Sentiment was also soured by weak demand growth, the strong dollar and a broader collapse in other commodity markets.
New York's West Texas Intermediate for January hit a similar low at $36.64 on Tuesday, having already breached $40 last week.
Crude futures had slumped Monday after the OPEC oil producing cartel refused on Friday to slash record high output, in a market dogged by oversupply.
A stubborn supply glut, and weak demand growth fuelled by China's economic slowdown, have combined to send crude prices slumping more than 60 percent over the past 18 months from levels above $100 a barrel.
Later at around 1500 GMT, Brent trimmed its losses to trade at $40.50, down 23 cents from Monday's close. WTI stood at $36.93 a barrel, down 72 cents.
AFP
