Brent crude declined below $72 a barrel today following OPEC’s decision to not cut oil production.
Reuters reported that Brent traded at about $71.90 a barrel, while US crude oil hit a record low of $67.75 a barrel, its lowest since May 2010.
OPEC’s decision, which was made at the groups production policy meeting yesterday, came after Saudi Arabia was not in favour of an output cut proposed by other members of the group.
Societe Generale senior oil analyst Michael Wittner said: "Welcome to the new world of oil.
"Saudi Arabia and OPEC will no longer be the mechanism to balance the market, they have relinquished that role."
The value of oil has decreased by more than 30% since June, with Brent and US crude declining from above $115 and $107, respectively.
Russia’s oil official Igor Sechin said oil prices may decline to $60 or below by the end of the first half of 2015.
Sechin said if prices remained low, Russia had the potential to cut between 200,000 and 300,000 barrels per day of output.
A poll by Reuters has found that a further blow to worldwide oil demand may come on Monday when China releases its official Purchasing Managers’ Index (PMI) data for November, which is expected to show slower market growth.