Oil Down 3%; Brent Near 11-Year Low As Oversupply Worries Return

Reuters

NEW YORK, Dec 28 (Reuters) - Oil fell more than 3 percent on Monday, with global benchmark Brent back near 11-year lows as last week's short-covering dried up and players worried that crude prices had more room to swoon in the new year.

U.S. gasoline futures slid more than 2 percent as the selloff extended to refined oil products. Heating oil fell 1 percent as expectations of cold weather limited its downside amid a 10 percent rally in natural gas, another heating fuel.

Crude futures slumped in Asian trading as Japanese data showed a 46-year low in oil sales in the world's fourth largest crude buyer. They slid more in the New York session, as some traders reckoned the two-day pre-Christmas rebound, where crude rose about $2 a barrel, had been overdone.

"Volume isn't great, which is typical for this time of year, and most guys are either flat on their books and positioning themselves for a weaker first quarter in 2016," said Tariq Zahir, an oil bear at Tyche Capital Advisors in Long Island, New York.

Brent settled down $1.27 at $36.62 a barrel, after falling to a session low of $36.52. It hit $35.98 on Tuesday, its lowest since 2004.

Brent also settled below U.S. crude's West Texas Intermediate (WTI) futures for a fourth straight day, showing its waning influence over WTI after this month's decision by the United States to lift a 40-year ban on U.S. crude exports.

WTI finished the session down $1.29 at $36.81, after an intraday low at $36.66.


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Brent Crude Oil : $54.94/BBL 0.88%
Light Crude Oil : $51.79/BBL 0.21%
Natural Gas : $3.65/MMBtu 6.10%
Updated in last 24 hours