Oil extended losses below $50 a barrel amid speculation that U.S. inventories will expand, deepening a global supply glut that's driven prices to a five-year low.

Futures declined for a fourth day. Stockpiles in the world's biggest oil consumer probably rose by 700,000 barrels last week, a Bloomberg News survey shows before a government report tomorrow.

Oil slumped almost 50 percent in 2014, the most since the 2008 financial crisis, after the Organization of Petroleum Exporting Countries resisted calls to cut output as it competes with U.S. producers. The market faces "more problems" this year, according to Morgan Stanley, with surging output in Russia and Iraq contributing to a surplus that Qatar estimates at 2 million barrels a day.

"The path of least resistance is lower," said Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.4 billion. "There is no bullish news. OPEC refuses to cut production and there is no evidence of falling production outside of OPEC."

West Texas Intermediate for February delivery dropped 98 cents, or 2 percent, to $49.06 a barrel at 10:06 a.m. on the New York Mercantile Exchange after touching $48.47, the lowest since April 2009. The volume of all futures traded was about 83 percent above the 100-day average for the time of day.

Brent for February settlement decreased 70 cents, or 1.3 percent, to $52.41 on the London-based ICE Futures Europe exchange after reaching $51.23, the lowest since May 2009. The European benchmark crude traded at a premium of $3.33 to WTI on the ICE.

Gold prices traded higher on Tuesday, continuing the upward movement started yesterday. Spot gold rose to $1,214.30 a troy ounce in morning European trade. Gold price increased as concerns over the economy in the Eurozone and political uncertainty in Greece weighed on stocks. Yesterday's inflation data from the Eurozone showed that German preliminary consumer price index decreased to 0.2% in December from 0.6% in November, missing forecasts for a decline to 0.4%. That was the lowest level since October 2009.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

There is also speculation that Greece could leave the Eurozone. Greeks will elect new parliament later this month. If a left-wing government wins Greek parliament elections, it may cancel austerity measures and may renegotiate Greece's debt.

Bloomberg

European Stocks Fall as Oil Drops Below $50; Yen Gains

European equities extended a global selloff as crude oil sank to the lowest level in almost six years. Asian stocks (MXAP) tumbled the most since March.

Source: http://www.bloomberg.com/news/2015-01-05/asian-futures-drop-as-oil-sinks-stocks-euro-holds-losses.html

Reuters

Brent falls below $52 as oil hits new five-and-a-half year lows

(Reuters) - Oil prices sank to fresh 5-1/2-year lows on Tuesday, extending losses after a 5 percent plunge in the previous session as worries over a global supply glut intensified.

Brent crude fell by 3 percent to below $52 (34 pounds) a barrel as cuts to monthly oil selling prices for European buyers by top OPEC producer Saudi Arabia heightened worries about oversupply.

Source: http://uk.reuters.com/article/2015/01/06/uk-markets-oil-idUKKBN0KE06T20150106

RTTNews

Asian Stocks Join Global Selloff

Asian stocks fell for a second consecutive session on Tuesday following heavy losses in the U.S. and European markets overnight. Slumping oil prices and growing concerns that Greece might leave the European currency union left investors fleeing risky assets for the presumed safety of government bonds and the safe-haven Japanese yen.

Source: http://www.rttnews.com/2437836/asian-stocks-join-global-selloff.aspx