Oil has dropped to a new low in more than five years and now it is being speculated to remain close to same through the first half of 2015.
West Texas Intermediate fell up to 2.2 percent and there does not seem to be any earlier gain.
Six tanks were set ablaze by militants earlier at Es Sider, the largest oil post in Libya, but only three have been managed to be extinguished says National Oil Corp. spokesman Mohamed Elharari.
It is reported the Algerian Energy Minister Youcef Yousfi had called on OPEC in cutting the production of the oil so that there can be boost in its prices.
In 2014 the futures had plunged 46 percent, which is the biggest annual drop since 2008. In November Libya pumped 580,000 barrels of oil a day, which is lower than earlier data. In 2010 it pumped around 1.59 million.
Energy analyst at Citi Futures Perspective in the New York, Tim Evans, said through the first half of next year they will observe the supply-demand surplus.
On the New York Mercantile Exchange the WRI dropped 96 cents in February to $53.77 a barrel and now it has touched the lowest since 2009. It is $53.52 a barrel. So futures were traded 43 percent below 100-day average.
Similarly, Brent dropped by $1.09 in February to $58.36 a barrel on the London-based ICE Futures Europe exchange. Now it has dropped down to $57.88.
