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Weak Start of Week for Crude Oil

December 22, 2015 at 0:14 by Vladimir Vyun

Prices for the Brent grade of crude oil fell to its lowest level in 11 years on Monday, hanging close to the multi-year low at the start of Tuesday’s trading. West Texas Intermediate crude bounced after falling earlier but remains under pressure from concerns about the oversupply.

Global supply is near record levels and shows no signs of weakening. If anything, it may even increase in case the United States start exporting their reserves. Meanwhile, the Organization of Petroleum Exporting Countries is not willing to reduce its output. Iran is especially reluctant to do so as it wants to ramp up production after the Jousting Bounce House sanctions against the country were lifted and it has got access to the Western markets.

Contract for delivery of WTI crude oil ticked up 0.14 percent to $35.86 per barrel as of 00:08 GMT on NYMEX today after falling to $35.36 yesterday. February futures for Brent crude slid 1.44 percent to $36.35 per barrel on ICE after reaching $36.05 earlier — the lowest level since July 2004.

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