Oil has sunk below US$35 a barrel for the first time in 11 years. Brent crude sank by 4.2% to US$34.8 a barrel, surpassing its late December fall, and taking the price to its lowest level since 1 July 2004, while the price of US crude dropped 3.3% to $34.77 a barrel, as per bbc.com.
Since mid-2014, oil prices have slumped 70% mainly because of oversupply. This in turn is largely due to US shale oil flooding the market. At the same time, demand has fallen because of a slowdown in economic growth in China and Europe. Iranian oil exports are also expected to rise later this year once Western sanctions against Tehran for its nuclear programme are lifted, increasing the oversupply of oil.
07-Jan-16 
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