1 of 5 | The price of Brent oil is on display on a board on the floor of the New York Stock Exchange at the opening bell on Wall Street in New York City on January 5, 2015. U.S. stocks fell sharply on Monday at the open with energy companies leading losses as the price of oil fell to its lowest since 2009. Photo by John Angelillo/UPI |
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NEW YORK, Jan. 5 (UPI) -- The U.S. government said oil prices lost more than any other commodity group as the price for West Texas Intermediate drifted below $50 per barrel Monday.
The price for West Texas Intermediate, the U.S. oil index, was off more than 5 percent from the previous session to dip below the $50-per-barrel mark in mid-day trading for the February contract. That's more than 50 percent off the June high-water mark and the first time WTI dropped below $50 since April 2009.
The U.S. Energy Information Administration said crude oil and petroleum products during the last four months of 2014 lost more value than any other commodity trading in the S&P Goldman Sachs Commodity Index.
"In 2014, the energy component of the GSCI fell 43 percent from the start of the year," EIA said in a Monday brief.
WTI prices are at the point where some drillers working in U.S. shale basins may be facing tightened purse strings. Year-on-year trends show increased activity in the United States, though the latest data from oil services company Baker Hughes show the industry is starting to slow down.
The price for Brent, the global benchmark, was down 6 percent from the previous session to trade at $54.37 per barrel for the February contract. Globally, the bear market for crude oil is spilling over to influence investor confidence in Middle East markets.
The stock index for Dubai lost more than 3 percent as Brent traded at its lowest point in more than five years. Asian markets rallied, however, with the Shanghai Composite Index up 3.6 percent at the closing bell.
