Oil plumbs 6 1/2-year low on glut, China woes

London

THE oil market extended its dramatic descent last week to strike a 6.5-year nadir close to US$40 per barrel on mounting fears of oversupply and poor demand, particularly from China.

Tumbling world stock markets fanned worries that weak global economic growth will hurt commodity demand, especially in the wake of downbeat Chinese manufacturing data. However, gold was catapulted higher, benefiting from the precious metal's status as a safe bet in times of turmoil.