Oil prices resumed their slide on Tuesday, with US crude falling below $37 per barrel for the first time since early 2009, amid fears the world was running out of capacity to store crude as a global glut intensifies.
Benchmark Brent and WTI futures both fell more than 6% on Monday, and on Tuesday they hit fresh lows last seen during the credit crunch of 2008/09, Reuters reported.
Brent futures were down 60 cents at $40.13 a barrel. US crude was trading at $36.86 a barrel, down 79 cents from its last settlement.
The global oversupply is being compounded by OPEC’s failure last week to agree a production ceiling, with members Iran and Iraq promising to ramp up output and exports next year.
The failure to agree production levels means OPEC core members are readying for new battles for share in the market already heavily oversupplied and consuming almost 2 million barrels per day less than it is producing.
