Oil Down 1% After Hitting 2009 Lows

Reuters

NEW YORK, Dec 8 (Reuters) - Oil futures ended lower with Brent down over 1 percent on Tuesday after plumbing near seven-year lows seen on fears that global oil producers will pump even more crude in battle for share in a saturated market.

Both Brent and U.S. crude's West Texas Intermediate (WTI) sunk beneath $40 a barrel in early trade, hitting February 2009 levels and extending Monday's 6 percent rout.

The market pared losses after some traders and investors cashed in their bearish bets from the past two sessions, fearing volatility ahead.

"Fundamentals remain bleak but the question is also how much more aggressive can sellers be when the downside becomes more limited?" said Pete Donovan, broker at New York's Liquidity Energy.

Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch & Associates said he expected "a near-term price consolidation that could see a lift in WTI values back toward the $42 area by the end of next week."

WTI settled down 14 cents at $37.51, after sliding to $36.64 earlier.

Brent finished the session down 47 cents at $40.26, after a session low at $39.81.


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Brent Crude Oil : $53.89/BBL 1.67%
Light Crude Oil : $50.84/BBL 2.14%
Natural Gas : $3.7/MMBtu 2.77%
Updated in last 24 hours