A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. Reuters/Lucy Nicholson
Oil prices fell for a seventh straight session on Monday, coming close to 11-year lows, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
Brent crude LCOc1 fell by 3.4 percent to below $36.70 a barrel for the first time since December 2008 and U.S. West Texas Intermediate (WTI) CLc1 sank 2.5 percent below $34.70 a barrel.
Brent traded less than 50 cents above the lows last seen during the 2008 financial crisis of $36.20 a barrel. If Brent falls below that level, that will be its lowest since mid-2004, when talk of a commodity super-cycle was only beginning.
WTI’s financial crisis low was $32.40 in December 2008.
“Oil is coming under pressure as the lack of OPEC cuts mean incessant oversupply continues,” said Amrita Sen from Energy Aspects think tank.
Both benchmarks have fallen every day since the Organization of the Petroleum Exporting Countries on Dec. 4 abandoned its output ceiling. In the past six sessions, they have shed more than 13 percent each.
OPEC has been pumping near record levels since last year in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.
New supply is likely to hit the market early next year as OPEC member Iran ramps up production once sanctions are lifted as expected following the…