The world market is concerned as oil prices reach an all new low in 12 years plunging below $28.

Asian stocks fell sharply Wednesday as the price plunges leaving Japan’s Nikkei at -3.7%, taking it more than 20% below its recent high in June and the Hang Seng in Hong Kong slumped -3.8% to its lowest level in more than three years. Fears about an economic slowdown in China, the world’s second biggest economy, have rattled financial markets at the start of the year.

In Europe, major indexes dropped 3% at the start of trading.

U.S. crude oil tumbled below $28 a barrel for the first time since September 2003, hitting a low of $27.42.

As early as 7:10 a.m. GMT (7:40 a.m. ET), both major benchmarks in oil pricing were down more than 2% with West Texas Intermediate at (-2.7%) and Brent crude at (-2.05%)

The crash in oil prices keeps getting worse, increasing concerns about the health of the world economy. The drop in oil prices as expected is creating a widespread headache for financial markets causing energy companies’ profits to drop, raising concerns about the possibility of bankruptcies in the oil sector and horrifying  investors about global growth.