LONDON (AFP) ― European benchmark Brent oil sank under $50 per barrel on Wednesday for the first time since 2009, hit by OPEC‘s production stance, oversupply, weak demand and the strong dollar.

In morning London deals, Brent North Sea crude for delivery in February dived to a 5 1/2-year low at $49.81 a barrel. New York crude had already slumped under $50 on Monday.

“The move below $50 shows how momentum is everything here,” CMC Markets analyst Michael Hewson told AFP.

“With no sign that OPEC will do anything about over-production, it seems likely that we could well see further declines towards $40 in the coming weeks ― particularly given that demand shows no signs of picking up.

“Weak growth and weak demand in China and Europe are likely to continue to be the main drivers as the battle for market share intensifies. We’ll probably still see sharp swings in the interim but the direction of travel seems clear, unless OPEC acts.”

Crude futures had tumbled Tuesday to fresh multi-year lows in another stormy day for global financial markets, as OPEC kingpin Saudi Arabia blamed weak global economic growth and said it will stick to its guns on production policy.

On Monday, Saudi Arabia reportedly cut its European and U.S. export prices in order to maintain market share.

Oil has lost more than half its value since June owing to a global supply glut and slowing growth in major world economies that has hurt demand.

Losses accelerated in November after the 12-nation Organization of the Petroleum Exporting Countries cartel decided not to cut output in response to lower prices and oversupply.

OPEC opted to keep its oil output ceiling at 30 million barrels per day despite ample global supplies.

Analysts said the move was aimed at stifling competition from new market players with higher costs ― in particular U.S. shale oil producers.

As oil prices continued their downward spiral, equity markets struggled to recover after a recent sell-off, while Greek political turmoil sent the euro skidding.

More losses on Wall Street and in Europe kept investors on edge as they await the release of US Federal Reserve minutes later in the day and jobs data on Friday.

Tokyo, which lost more than three percent Tuesday, edged up just 2.14 points to close at 16,885.33, and Seoul was also marginally higher, tacking on 1.38 points to 1,883.83. Sydney lost 0.21 percent, or 11.19 points, to 5,353.61.

However, Shanghai added 0.67 percent, or 22.51 points, to 3,373.94 while Hong Kong clocked up 0.83 percent, or 195.85 points, to 23,681.26.

“With the U.S. markets again under pressure, the lead for Asia looks bleak,” Evan Lucas, a markets strategist in Melbourne at brokerage firm IG, told Bloomberg News. “Until oil finds bottoms, the markets will remain in a downward trajectory.”

Global stock markets have been routed at the start of the year as oil prices continue to slump ― losing more than 50 percent since June ― and dealers take profits after some healthy gains in 2014.