Oil Is Tanking

Oil prices just tanked.

West Texas Intermediate crude is at $52.03, down 3.7% on Friday. Brent crude just hit $55.65, down 2.9%. These are the lowest levels since spring 2009.

This follows manufacturing PMI reports from China and the eurozone, which signaled that economic activity slowed in December.

These unfavorable demand signals were exacerbated by unfavorable supply signals. "Russia's 2014 oil output hit a post-Soviet record high average of 10.58 million barrels per day (bpd), rising by 0.7 percent helped by small non-state producers, Energy Ministry data showed on Friday," Reuters reports.

According to Bloomberg, Iraq exported 2.94 million barrels of oil a day in December, the most since the 1980s.

When it comes to supply, all eyes continue to be on Saudi Arabia, which refuses to cut oil production despite plunging prices.

"If Saudi does not help prevent the decrease in oil price ... this is a serious mistake that will have a negative result on all countries in the region," said Hossein Amir Abdollahian, Iran's deputy foreign minister.

Here's a longer-term look at WTI crude.