Oil prices steadied not far off their 11-year lows on Tuesday, under pressure from slowing global demand and abundant supplies, with Saudi Arabia signalling no change to its oil policies and Iran preparing to ramp up exports.
International benchmark Brent and U.S. WTI crude prices edged up after falling 3 percent on Monday to trade below $37 per barrel as of 1000 GMT. Brent stood less than a dollar away from its 11-year low of $35.98 reached last week.
Both crude benchmarks are down by more than two-thirds since prices started tumbling in June 2014 on the back of a U.S. shale oil boom and OPEC’s kingpin Saudi Arabia decision to pump near record volumes of oil to stifle higher-cost rival producers.
On Monday, Saudi Arabia announced plans to shrink its record $98 billion state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenuesfrom taxes and privatisation.