Oil prices have tumbled to fresh five and a-half-year lows as Saudi Arabia ruled out cutting production and commentary indicated no early end to the supply glut.
Saudi Arabia said it would stick to its guns on production policy and deal with the challenge of lower prices.
Prices are down nearly 10% so far this week and as New Zealand petrol prices fall, predictions are being made prices will fall further.
Crude oil prices have plunged more than 55% since June, when benchmark Brent traded above $US115 ($NZ148.30) a barrel and United States crude was above $US107.
Brent traded yesterday at $US51.10 a barrel and US crude was down $US2.11 at $US47.93.
RJO Futures senior market strategist Phillip Streible said the likelihood of seeing $US46 or $US45 a barrel was quite likely.
''People, I think, are further understanding the US is becoming a powerhouse in creating crude oil and that's not going to change anytime soon.''
The euro hit a nine-year trough as collapsing oil prices and worries about the world economy drove skittish investors into the arms of safe-haven sovereign debt.
From Japan to Germany to Australia, government borrowing costs reached record lows as oil prices fell and investors wrestled with the risk of global deflation.
