Crude oil prices have fallen to a five-year low with analysts blaming expectations of more bad news for demand due to slower economic conditions.

The Australian stock exchange has fallen in response with the All Ordinaries Index down 0.3 per cent to 5430.1 with both the energy and materials sectors falling while financial were up slightly.

• US S&P 500 at fresh record; Dow snaps winning streak
• Russian economy shrinks 0.5 per cent after collapse in oil prices and rouble

US crude benchmark West Texas Intermediate for February delivery lost $US1.12 to finish at $US53.61 a barrel on Monday after holding in the $US56 range for nearly two weeks.

Brent crude for February delivery, the London benchmark, fell 57 cents from Friday’s close to $US57.88.

Both last traded at those levels in May 2009.

Analysts said traders were girding for more downward pressure stirred up by the impact of Greece’s political situation on the European economy, expected poor numbers on China’s industrial sector, and another possible increase in US stockpiles.

“It’s a very bearish environment out there,” said John Kilduff of Again Capital.

Prices were stronger in early trade on Monday on signs that Libyan output could be cut back due to storage tanks fires amid clashes between government and militia forces, but that had little lasting impact on the market, noted Kilduff.

Bob Yawger of Mizuho Securities said there were other short-term causes for the fall, including US storage tank operators trying to lower their holdings for end-of-year tax reasons.

The New Zealand dollar is moving towards parity with its Trans Tasman counterpart for the first time in 30 years with the Kiwi rising from A86c to A96c this year as a strong economy and the expectation of rising interest rates give investors confidence in the currency.