Oil prices have been slipping for a long while, but on Friday, in New York it slipped under $US40 per barrel for the very first time in six years. The oil supply glut appears to bring down crude prices further. In June, the oil prices witnessed its peak this year. Since then the crude prices have dropped approximately thirty five percent as producers continued to keep the output high although the excess supply brought down the prices in the market. Brent crude also dropped to a low of six- years. West Texas Intermediate (WTI) may slip to $US32 if the global surplus persists to grow in the current rate said an August report by Citigroup Inc. The future prices also slipped on concerns that the weak economy of China will lessen further demands. China is the second largest oil consumer in the world and a dip in its manufacturing gauge sank to its lowest level since the financial crisis which raised concerns of plummeting demand. WTI for October delivery slipped to $US40.23 a barrel or by $US1.09 or 2.6 percent on the New York Mercantile Exchange in the afternoon hours. For a while it touched $US39.86, which is the lowest level noted since2009 March.

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