Oil prices have briefly fallen below $30 a barrel on international markets for the first time in twelve years, before recovering again.
Brent crude, used as an international benchmark, fell as low as $29.96, but bounced back to trade at $30.22.
Oil prices have fallen by 70% in the past 15 months.
The global market remains oversupplied as production remains high around the world, and ample inventories are weighing on the market.
Traders say there are few reasons to bet on rising prices until the global glut of crude shows definite signs of shrinking.
Crude stockpiles are likely to keep rising in the coming weeks, analysts say, as refiners buy less oil while performing seasonal maintenance.
At 482.6 million barrels, crude inventories are close to the eight-decade high reached in April and could surpass 500 million barrels, according to market watchers.
Earlier, Russia’s Prime Minister, Dmitry Medvedev, warned tumbling oil prices could force his country to revise its 2016 budget.
He said that the country must be prepared for a “worst-case” economic scenario if the price continued to fall.
Taxes from oil and gas generates about half the Russian government’s revenue.