Oil sinks below $45

OIL dropped below $45 a barrel for the first time this year as concerns mount that it will be impossible to curb over-production.

fossil fuel firms have been suffering from a market glut in which supply far outstrips demand, forcing them to sell it cheaper.

The Opec cartel of oil- producing states has been battling to limit drilling so prices can rise – but progress has so far been fitful.

Although oil giants such as Russia and Saudi Arabia have kept a lid on production, markets were spooked yesterday by reports of increased levels in Libya and Nigeria.