Oil plunged to a new five-year low with Brent futures for January falling below $66 per barrel on the London International Petroleum Exchange. The latest rout is due to banks and energy groups lowering price forecasts due to the continued supply glut.
Brent for January settlement declined as much as $2.30 to its lowest price since October 2009. WTI for January delivery also slumped, losing as much as $1.43 trading at $64.41 per barrel.
JPMorgan Chase says that oversupply will continue into 2015, after OPEC decided not to cut output, and trimmed its 2015 Brent price to $82 per barrel, a $33 cut. In November, the price of Brent lost 18 percent.
The US Energy Information Administration has lowered its 2015 predictions as well, with Brent expected to average $83 per barrel, an $18 per barrel cut than the last forecast. WTI is forecast to average $77 in 2015.