Oil prices have fallen on negative corporate reports and new signs that the global energy demand is deteriorating further.
News that crude imports to China, the world's second biggest energy consumer, fell in November to the lowest level this year, has dampened the mood.
Reports, such as Japanese carmaker Toyota's forecast of a historic annual loss, also put pressure on oil prices.
US light, sweet crude for February delivery fell $2.45 to trade at $39.91.
London Brent crude fell $2.55 to $41.45.
"I think the concerns about economic weakness still seem to be overshadowing the entire complex," said Phil Flynn, an analyst at Alaron Trading.
Delayed effect
Opec, the oil cartel, said last week it was going to cut production by 2.2m barrels per day to boost crude prices.
But some analysts say markets are sceptical about whether members of the cartel will be able to comply.
Oil prices have fallen more than $100 a barrel since July, when they reached a peak of $147.
"There's so many prompt barrels sitting around that that's really sitting on the market right now, especially the near contracts," said Michael Lynch, president of Strategic Energy & Economic Research.
"The cuts are really going to have an effect somewhere around February, March."
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