Signs of a slowdown in the British economy helped push oil prices, already at historic lows, further into negative territory in the Tuesday session.
The price for Brent, the crude oil benchmark based on North Sea blends, was off close to 3 percent from the previous session to trade near the $46 per barrel mark, the second consecutive day below $50 per barrel and a 5 1/2-year low.
Oil prices are off more than half their June value, falling as markets swing to the supply side in a weakened global economy.
The British economy became the latest to show signs of a slowdown. The Office for National Statistics said Tuesday consumer price inflation in December was down 0.5 percent and 1 percent for November, some of the lowest rates on record.
British economic data mirrors developments emerging elsewhere in the region. Inflation in an already struggling eurozone turned negative in December, driven in large part by falling energy prices.
The low price of oil means international energy companies are forced to cut their spending plans for the year, which is spilling over to impact finances for secondary parts of the industry. While low oil prices are good for consumers, the energy industry itself is starting to suffer.
Ithaca Energy, which focuses on North Sea production, said Monday its budget for capital spending this year would be down about 60 percent from last year. Production is expected to decline by about 4 percent.
The price for West Texas Intermediate, the U.S. benchmark, lost about 80 cents per barrel from the previous day to sell for $45.29 early in the Tuesday session.
According to data published Tuesday by the U.S Energy Information Administration, there are few signs the price for WTI is curbing U.S. oil production.
