Oil hits five-year low amid glut and faltering demand

Brent crude oil traded below $60 a barrel yesterday, near five-and-a-half-year lows, as major oil producers signalled that they would maintain output despite a supply glut and faltering demand in Russia and Europe.

Core Gulf OPEC members have said they are prepared to wait as long as a year for the market to stabilise, undercutting hopes they will step in to stem crude price losses.

Oil prices have almost halved over the last six months as increasing volumes of light, high-quality crude from North American shale have overwhelmed demand.