Oil prices hit new 14-month low after global selloff

Oil prices fell to another 14-month low earlier today as markets worried a slowdown in the US economy could hit demand.

The Brent crude standard dropped over four per cent to breach the $55 per barrel mark, landing as low as $54.82.

Speculators were spooked after international markets fell on the US Federal Reserve’s decision to hike interest rates.

The FTSE 100 fell to its lowest level in over two years this morning following the news.

“Brent crude has lost […] in early trade on concerns that US demand will decline if the economy there starts weakening next year and on concerns that the US China trade dispute will continue to affect Chinese demand,” said Fiona Cincotta, an analyst at City Index.

“It will be hard for oil to turn the corner while US equities are falling but if the US stock markets stabilise Brent and WTI could also settle on a flat or a marginally upward trajectory.”

Meanwhile the US standard West Texas Intermediate fell around four per cent to $46.26.

Xi Jiarui, chief oil analyst at consultancy JLC, said: “Investors quickly moved their attention to deteriorating fundamentals in the oil markets, including more signs of slowing economic growth next year, record production and the lack of confidence with Opec’s pledge to curb production.”