Oil prices sink on supply glut fears

LONDON: Oil prices extended a sharp plunge Friday to hit the lowest levels in more than one year on fears of a global supply glut.

Benchmark oil contract, Brent North Sea, tumbled under $60 per barrel and New York's WTI dived more than seven percent to $50.63.

Brent's fall of more than five percent sent it sliding to $59.34 per barrel.

"It has been a brutally bearish trading week for oil prices with Brent Crude and WTI oil both crashing to a fresh yearly low... thanks to oversupply concerns and global growth fears," noted Lukman Otunuga, research analyst at traders FXTM.

"With an appreciating dollar rubbing salt into the wound (of dollar-denominated crude), the outlook for oil prices points to further downside," he added in a client note.

Oil prices have been in freefall this month despite OPEC kingpin Saudi Arabia eyeing a sizeable cut in output to help support prices and producers' incomes.

About 1350 GMT, Brent recovered slightly to trade at $59.66 per barrel, while WTI stood at $50.98.