European stocks tumbled today, wiping out gains early in the day spurred by a modest and short-lived rebound in oil prices, as concerns over global crude demand persisted.
Low oil prices and the impact of Western sanctions especially took a toll on Russia, which saw its ruble plummet by 9.5 per cent amid warnings of a steep economic contraction of 4.8 percent next year if crude prices do not climb.
After slight increases earlier in the day, Brent North Sea crude for delivery in January was down 44 cents at USD 61.41 in late London trading. US benchmark West Texas Intermediate (WTI) for January declined sharply, down USD 1.15 to hit USD 56.66 in midday trading in New York.
Both had hit their lowest levels since 2009 previously during today's trading.
The oil market has now collapsed by 50 per cent in value since June, weighed down by plentiful supplies, the stronger dollar and weak demand arising from the struggling global economy.
Renewed worries over oil prices wiped out gains earlier in the day in European stocks, with London's benchmark FTSE 100 index retreating 1.87 per cent to end the day at 6,182.72 points.
The Paris CAC 40 fell 2.52 per cent to 4,005.38 points, its lowest level since October 20 and its sixth-consecutive drop. In Frankfurt, the DAX 30 lost 2.72 per cent to 9,334.01 points.
European equities fell sharply last week as traders tracked the dizzying plunge in oil prices, which hurts the profits of energy companies.
"If ever a reminder was needed that oil is by some distance the most important commodity in the world the last few weeks have provided it," said analyst David Hufton at energy brokerage PVM Oil Associates.
A potential new political crisis in Greece also spooked European markets last week, with concerns over the possibility of snap elections which could jeopardise tough austerity measures.
