Oil prices tumbled 4 percent on Monday, coming close to their 11-year low, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
Brent crude fell by 4 percent to below $36.40 a barrel for the first time since December 2008 and U.S. West Texas Intermediate (WTI) sank almost 3 percent below $34.60 a barrel.
Brent traded only 14 cents above the lows last seen during the 2008 financial crisis of $36.20 a barrel.
If Brent falls below that level, that will be its lowest since mid-2004 – a year when oil was beginning its surge from the single digits it hit during the 1998 financial crisis and when talk of a commodity super-cycle was only beginning.
WTI’s financial crisis low was $32.40 in December 2008.
“Oil is coming under pressure as the lack of OPEC cuts mean incessant oversupply continues,” said Amrita Sen from Energy Aspects think tank.