The US crude tumbled to near its lowest level since late 2003 on Thursday.
It has dragged down by continuing worries about the global oversupply of crude and falls in the wider financial markets.
US crude futures dropped 4% Thursday, driving prices below $27 for the second time in recent weeks, reports CNN, AFP.
Before this year, oil prices hadn’t dipped below $27 since 2003.
The steady decline is creating a widespread headache for financial markets.
It’s causing energy companies’ profits to plunge, raising worries about the prospect of bankruptcies in the oil sector and spooking investors about global growth. In total, crude oil has plunged an incredible 75% from its June 2014 peak of almost $108.
Freed from sanctions, Iran ramped up its production to nearly 3 million barrels a day in January — an 80,000 increase from December. Iraqi output reached a record high of 4.35 million barrels a day in January, and shipments from Saudi Arabia have also increased.