US Oil Prices Drop Under $36 / Barrel, Setting A New Low For The Downcycle #commodityprices

By 11th December 2015 Industry News No Comments

US oil prices fell to their lowest level since 2008 after the IEA said OPEC production will ensure an oversupplied market next year.

US oil prices fell about 2.5% to $35.86 in trading Friday morning.

OPEC’s decision on December 4 to jettison its official 30 M/bpd production ceiling reflects the group’s “renewed determination to maximize low-cost OPEC supply and drive out high-cost non-OPEC production- regardless of price,” the International Energy Agency said in its monthly report released this morning.

Growth in global oil demand is seen slowing next year amid the “unrelenting” oversupply of crude, with the “first signs of a slowdown” in demand being seen in 4Q15.