NEW YORK, Dec 8 (Reuters) - Oil dived 4 percent to new five-year lows on Monday, as Wall Street expectations of a deeper price slump next year and a Kuwaiti prediction for $65 crude set off one of the biggest declines this year.
The chief executive of Kuwait's national oil company said oil prices were likely to remain around $65 a barrel for the next six to seven months, the latest indication that Gulf producers are content to ride out the rout.
The pessimistic outlook deepened the decline in a market that many traders see as a one-way bet for the time being.
"When these things go lower, they tend to go much farther than people anticipated," said Tariq Zahir at Tyche Capital. "I definitely think we're going to keep heading lower, everyone is trying to pick a bottom."
Brent for January fell $2.88, more than 4 percent, to settle at $66.19 a barrel, the third-largest one-day percentage drop this year and its lowest settlement price since October 2009.
U.S. crude fell 4.2 percent or $2.79 to end at $63.05 a barrel, its lowest since July 2009.
Late on Friday, Morgan Stanley set a new bar for bearishness on Wall Street, slashing its average 2015 Brent base-case outlook by $28 to $70 per barrel and warning that prices could drop as low as $43 a barrel next year.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you