🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Oil prices hover near 7-year lows as glut concerns weigh

Published 12/14/2015, 03:16 AM
© Reuters.  Oil prices drop for 7th session on oversupply worries
LCO
-
CL
-

Investing.com - Oil prices fell for the seventh straight session on Monday, amid lingering concerns a global supply glut may stick around for longer than anticipated.

On the ICE Futures Exchange in London, Brent oil for January delivery dipped 20 cents, or 0.53%, to trade at $37.73 a barrel during European morning hours. On Friday, London-traded Brent sank to $37.36, a level not seen since the depths of the global financial crisis in December 2008.

Brent futures plunged $5.07, or 11.79%, last week, its worst weekly loss of the year. Brent oil prices are on track to post an annual decline of 33% in 2015, as oversupply concerns dominated market sentiment for most of the year.

Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange inched down 15 cents, or 0.42%, to trade at $35.47 a barrel. Nymex futures fell to $35.16 on Friday, the lowest since February 2009.

Last week, New York-traded oil futures tumbled $4.35, or 10.88%, the biggest weekly decline since December 2014. U.S. oil futures are down 33% so far this year amid worries over ample domestic supplies.

Oil futures have fallen every day since the Organization of the Petroleum Exporting Countries failed to agree on output targets on December 4. Prices are down nearly 15% over the past seven sessions.

On Friday, the International Energy Agency projected that a global supply glut could worsen next year. In its December oil market report, the Paris-based IEA said that global oil demand growth will slow to 1.2 million barrels per day next year, down from 1.8 million in 2015, widening the gulf in the supply-demand imbalance worldwide.

The bearish estimates came after the Organization of the Petroleum Exporting Countries said it pumped the most crude in more than three years last month, adding to concerns over a glut in global supplies.

In its own monthly oil market report published last Thursday, OPEC said crude production rose by 230,100 barrels a day in November to 31.695 million, the most since April 2012, as the cartel pressed on with a strategy to protect market share and pressure competing producers.

Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.26 a barrel, compared to $2.31 by close of trade on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.