Oil prices fell to their lowest since the third quarter of 2017 on Friday, heading for losses of nearly 11 percent in a week, as global oversupply kept buyers away from the market ahead of holidays over the next two weeks.
Crude has lost ground along with major equity markets as investors fret about the strength of the global economy heading into next year. The prospect of a possible government shutdown in the United States, the world's biggest oil consumer, added to investors' worries.
Oil markets have pulled back amid concerns about oversupply, despite planned production cuts from the Organization of the Petroleum Exporting Countries.
"OPEC folks are not doing a good job of convincing the international oil community that they are going to be a strong advocate of their supply cut program," said Bob Yawger, director of futures at Mizuho in New York.
Falls were exaggerated by thin trade and risk aversion ahead of the Christmas and New Year holidays, traders said.
Brent crude fell 35 cents a barrel to $54.00 by 11:56 EDT (1656 GMT) after earlier touching $52.79 a barrel, its weakest since September 2017.
U.S. light crude oil was flat at $45.88 a barrel, after earlier touching a session low of $45.13 a barrel.
Both contracts are on track to fall 10.4 percent in the week. Since reaching multi-year highs at the beginning of October, both crude oil benchmarks have lost more than a third of their value in their steepest collapse for three years.
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