Producers hold ground despite oil price slump

Oil fell in 2014 by the most since the 2008 global financial crisis as US producers and the Organisation of Petroleum Exporting Countries ceded no ground in their battle for market share amid a supply glut.

The US benchmark ended at a five-year low yesterday, capping a 46% drop in 2014, as stockpiles of crude oil and gasoline reached seasonal record highs and as Opec produced more than its quota in December for a seventh month.

Goldman Sachs said it expected a “far lower” new normal for prices and Barclays said oil had “further downside risk”.