Brent crude breaks below $50 for first time since May 2009

Specifically, the London barrel traded down to $49.99 on Wednesday. This was the first time Brent crude has dropped below the $50 level since 1 May 2009.

It's US counterpart West Texas crude was pricing below $48.

"Many will be asking just how much lower this oil price can go before some kind of stabilising effect kicks in," Alpari Chief Market Analyst James Hughes wrote in a note to clients on Wednesday.

"However after every $10 fall experts have been calling the end of the slide but have seen it continue to drop like a stone," he added.

Hughes believes traders will now be watching the $40 level as the next possible bottom for oil though it doesn't rule out a break below even that level of prices.

"It now almost seems we will keep going lower until the members of the OPEC cartel literally can no longer afford a slip in price," he explained.

The team at Alpari noted technical levels to watch as the drop in oil prices continue.

Particularly, they pointed to the support at the April 2009 low of $47.26 but didn't rule out the possibility of a further decline.

"Should this break though, particularly today, then $40 and even $36.20 - December 2008 lows - look a strong possibility", they concluded.