Oil prices have sunk to new six-year lows, intensifying concerns about the health of the global economy. The price of West Texas Intermediate (WTI) crude, the U.S. benchmark, fell below $40 a barrel for the first time since the 2009 financial crisis.

This dramatic drop is attributed to a persistent global oversupply of oil, coupled with anxieties about weakening demand from major economies, particularly China. Increased production from OPEC nations, as well as rising U.S. shale output, has contributed to the glut in the market.

Analysts are closely watching the situation, with some predicting further declines if production levels remain high and demand continues to falter. The impact of these low prices is being felt across the energy sector, with companies scaling back investment and jobs.

Here are some of the key factors contributing to the price decline:

• OPEC’s continued high production levels
• Rising U.S. shale oil output
• Concerns about slowing economic growth in China
• A strong U.S. dollar, which makes oil more expensive for buyers using other currencies

The long-term implications of these low oil prices remain uncertain, but they are likely to have a significant impact on the global economy and the energy industry for years to come.