Global benchmark Brent Crude and the US mark West Texas Intermediate have tumbled since the meeting of OPEC menaces at the start of the month,

and both on that hovering around 37 dollars a barrel. This group within the grip about which member should cut production

to shore up Europe price has led to a continuation of OPEC's existing policies to keep on pumping.

Although production flow outside the cartel has slowed dramatically amid low oil prices, OPEC producers have increased output.

The scrapping of the grip official ceiling this month took away any pretense of production constraint,

adding to the bearish sentiment in the market.

Although cheaper oil is a boom for consumer countries, for the US, UK and China, a prolonged slide is detrimental to producination.

For example, Venezuela, Nigeria, and even financially stronger Gulf economies such as Saudi Arabia.

At the same time, the oil price collapsed and battered the balance sheets of the world's biggest energy companies

that have been forced to slash hundred of billions of dollars in future investment and cut thousand of jobs. Energy stock have been hit hard, too, by the oil slump.

Highly indebted US shell drillers and the banks that lend to them are also suffering with much of the junk bond energy sector currently in distress.

Bankers in the US say they are cutting the borrowing limits of exploration and production companies by as much as 20%

as the value of that reserves have fallen sharply. There is a concern a lengthy period of cheap crude could trigger widespread defaults.

If crude infantry set to rise even farther over the next year, a storage facility is on land reached tank tops.

oil analyst are finding it difficult to be optimistic about the price.