Oil prices sink lower, hit 5-year low

Oil prices haven’t hit bottom yet.

Extending a dramatic decline this year, U.S. crude dropped to a new five-year low Monday.

The U.S. benchmark, West Texas Intermediate, fell 4.2% to $63.05 a barrel, the lowest since July 2009.

Oil and gasoline prices have been driven lower in recent months by a North American shale oil boom and a sluggish global economy. The combination has increased supplies and depressed demand.

The average price for a gallon of regular gas nationwide fell to $2.668 on Monday from $2.769 a week ago, according to Auto Club.

The California average was $2.981 a gallon, down from $3.058 last week.

Declining prices have been a boon to U.S. consumers, especially middle- and working-class Americans whose gasoline expenses account for a significant portion of their paychecks, analysts said.

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