Oil lurched to new 12-year lows before paring some losses yesterday, with some traders betting a rout triggered by fears over China demand and swelling US stockpiles had run its course, for now.

Oil prices will probably continue to decline and could reach as low as $30 (€26.40) a barrel, according to Gary Cohn, president of Goldman Sachs Group.

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.