Brent oil down 3%, at fresh 6-year low

FXStreet (Mumbai) – Brent oil prices fell more than 3% to a fresh 6-year low of USD 37.09/barrel on worries the supply glut is here to stay for a long time.

Brent Jan futures currently trade 3.1% lower at USD 37.11/barrel. Prices are down for the seventh consecutive session and are on track to suffer losses for the second consecutive year.

The latest wave of sell-off was triggered by OPEC’s decision on Dec 4 to lift the output ceiling. The International Energy Agency (IEA) in its monthly report released last week called OPEC’s decision as the Cartel’s renewed determination to pursue its strategy of defending the market share and crowd out non-OPEC and particularly US shale investment.

Across the pond, the WTI Jan futures are currently down 2.68% at USD 34.66/barrel. A stronger USD ahead of the Wednesday’s FOMC decision only adds to the bearish pressure on oil.

Brent oil prices fell more than 3% to a fresh 6-year low of USD 37.09/barrel on worries the supply glut is here to stay for a long time.

(Market News Provided by FXstreet)