Oil fell close to an 11-year low, pressured by a relentless build in oversupply, and as the dollar strengthened after the U.S. Federal Reserve raised interest rates for the first time in nearly a decade.
Brent crude for February delivery, the front-month contract from Thursday, fell 9 cents to $37.29 a barrel. The global benchmark lost 3.3 percent in the previous session.
A dip below $36.20 will be the lowest since July 2004. Analysts said such a move in the run up to year-end would be likely.
“The price action is likely to remain violent, but the odds are on lower numbers,” said PVM Oil Associates technical analyst Robin Bieber. “Stick with the trend. It is not advised to be long.”
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