New Delhi: Oil prices remained near five-and-a-half year lows in early Asian trading on Wednesday. Oil prices are down almost 10 per cent this week to hit their lowest since spring 2009.
Analysts say a supply glut would mean that more falls are likely before a rebound.
“The risks to oil prices remain skewed to the downside in the near term,'' ANZ bank had said in a note.
The low prices is a result of sluggish demand, especially in Europe, which is still struggling with its debt crisis, and in Asia, where China's growth is slowing and Japan is battling recession. Prices are also impacted by high output.
Crude oil prices have plunged more than 55 per cent since June, when benchmark Brent traded above $115 a barrel and US crude above $107.