Global crude oil prices continue dropping to record low, with Brent down at $32.62 per barrel and US West Texas Intermediate (WTI) as low as $32.36, amid China’s emerging economic slowdown and continuous overproduction of crude, which shatters hopes for market recovery in 2016, Reuters reported.

Turmoil in the Chinese market emerged after China, the world’s second largest oil consumer, allowed its yuan currency to slip and suspended equities trading, The Economic Times explained. Slowing growth of China’s energy demanding economy is nurturing fears that the oil price decline will continue and force further cuts from major oil producing countries, wrote the Financial Times. In addition, OPEC is reported to have further cemented its intransigence over supply reductions due to growing tension between Riyadh and Tehran.

According to Goldman Sachs cited by Reuters, the oil will see sustained low prices through Q1, and could hit $20, adding that more losses are necessary for oil producers to adequately cut supplies and balance the global glut.

In earlier news, the price of Western Canadian Select grade, the world’s cheapest crude, dropped to $19.81 a barrel, the lowest since 2008, and Maya crude, a heavy grade from Mexico, sank to $25.55 a barrel, the lowest since 2004, according to data compiled by Bloomberg. Global oil prices have dropped 70% to 12-year record low since July 2014.