CANBERRA:Oil prices slumped sharply overnight on expectations of growing supplies and broad concerns about the pace of global growth. Light, sweet oil for February delivery fell $US2.11, or 4.2 per cent, to $US47.93 a barrel on the New York Mercantile Exchange.Brent, the global benchmark, fell $US2.01, or 3.8 per cent, to $US51.10 a barrel on ICE Futures Europe.
Both contracts hit their lowest prices since April 2009.The sell-off accelerated as traders looked ahead to weekly US inventory data, which are expected to show that crude oil supplies grew last week. New indications that top exporter Saudi Arabia is unwilling to cut production also weighed on the market.
The price drop roiled other markets. Currencies of oil producing nations fell against the US dollar and shares of energy companies slid. Bond yields fell to fresh lows as investors, worried about deflation, piled into safer assets.
