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21 Dec 2015
Brent crude hits 11-year low
FXStreet (Mumbai) - The sell-off in oil took the prices to another landmark today – 11-year low – as concerns of oversupply continues to dominate the markets.
Brent futures fell USD 36.08/barrel; the lowest level since July 2004. The massive oversupply and a strong dollar continue to weigh over the prices.
US bank Goldman Sachs is of the opinion that a $20 oil is possible in 2016. Other central bankers believe a further drop could trigger bargain hunting leading to a technical correction.
Meanwhile, data released on Friday showed that the number of rigs rose by 17 last week. This contradicts the widespread belief that lower priced will eventually lead to crowding out of the US shale investment.
Brent futures fell USD 36.08/barrel; the lowest level since July 2004. The massive oversupply and a strong dollar continue to weigh over the prices.
US bank Goldman Sachs is of the opinion that a $20 oil is possible in 2016. Other central bankers believe a further drop could trigger bargain hunting leading to a technical correction.
Meanwhile, data released on Friday showed that the number of rigs rose by 17 last week. This contradicts the widespread belief that lower priced will eventually lead to crowding out of the US shale investment.