A gasoline pump is seen hanging at a petrol station in central Seoul in this April 6, 2011 file photo. Reuters/Lee Jae-Won
Oil prices dipped on Tuesday, with Brent set to extend its losing streak to an eighth day, as investors remain concerned about a global glut and mild winter demand that sent prices close to 11-year lows during the previous session.
Brent LCOc1, the global benchmark, was at $37.74 at 0440 GMT, down 18 cents from its last settlement after rising slightly earlier on Tuesday.
The contract on Monday bottomed out at $36.33 a barrel, only a few cents above the $36.20 low last seen during the 2008 financial crisis. Falling below that level would take Brent to prices not seen since the middle of 2004.
U.S. crude CLc1 was at $36.23, down 8 cents.
Bearish sentiment remains strong, fueled by an OPEC decision earlier in December to abandon setting a production ceiling for the oil cartel and a likely rise in Iranian supplies after sanctions are lifted.
With OPEC flooding international markets while U.S. drillers keep producing large amounts of crude, the Brent/WTI premium has halved over the last week to around $1.50 per barrel. That’s the narrowest spread between the two benchmarks since January.
Traders said that the low prices were a combination of structural oversupply and seasonal price weakness. “The weather is very mild with reduced demand for heating oil,” said Oystein Berentsen, managing director of crude oil at Strong Petroleum (0852.HK).…