NEW YORK (TheStreet) -- Crude oil resumed its selloff on Friday, crushed by market fears that oversupply would further decimate the commodity's value in the face of tepid global demand.

Stocks were in the red, signaling the fourth down day this week. The S&P 500 dropped 0.57%, the Dow Jones Industrial Average fell 0.71%, and the Nasdaq tumbled 0.46%.

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Crude was under pressure again after the International Energy Agency on Friday cut its forecast for oil demand in 2015 by 230,000 barrels a day to 900,000 barrels. It's the fifth time in six months the IEA has slashed its forecast.

The price of oil has ignored key technical levels of support and is now more oversold based on its weekly relative strength index (RSI) than it was in 2008, said Raymond James' Andrew Adams in a note.

"When sentiment gets too strong, panic or euphoria trumps support or resistance," he wrote.

West Texas Intermediate crude on Friday was down 2.5% to $58.48 a barrel. On Thursday, the commodity slipped below $60 a barrel for the first time since July 2009. Prices are now down 44% from a mid-summer peak.

The oil selloff spread to Europe overnight with the STOXX Europe 600 Oil & Gas Index down more than 1%. Germany's DAX plummeted 1.4% and France's CAC 40 plunged 1.4%.

The Producer Price Index for November slipped 0.2%; economists were expecting a decline of 0.1%. A month earlier, the measure increased 0.2%. Lower gasoline prices benefited consumer sentiment with the Reuters/University of Michigan's reading surging to 93.8 compared to an estimated 89.5.

Adobe (ADBE) shares gained 8% following a fourth-quarter earnings beat and the announcement it is buying stock image company Fotolia for $800 million. The deal is expected to close in the first quarter of 2015.

United Technologies (UTX) was 0.83% lower after guiding for earnings next year below analysts' estimates due to lower expected sales at its Pratt & Whitney military unit.

SeaWorld (SEAS) shares were higher after the marine park operator said it plans to deliver $50 million in expense cuts by the end of 2015 and was on track as it implements restructuring across all 11 theme parks.

GoPro (GPRO) was up 2% after JPMorgan upgraded the stock to "overweight" from "neutral" and maintained its $70 price target. Rackspace (RAX) fell after D.A. Davidson downgraded the stock to "underperform" on a valuation call.

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-- Written by Keris Alison Lahiff in New York.

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