REUTERS
Crude oil futures fell for a seventh straight session on Monday, their longest losing streak since mid-2014, against a backdrop of a forecast from the International Energy Agency (IEA) that the global supply glut was likely to deepen next year, Reuters reported.
Brent crude LCOc1 fell below $38 a barrel for the first time since December 2008 on Friday after the IEA said demand growth was slowing while OPEC output remained high. U.S. crude, West Texas Intermediate (WTI) CLc1, settled in the $35 territory for the first time since February 2009, according to Reuters.
Both benchmarks have fallen every day since OPEC on December 4 abandoned its output ceiling, according to the report.
OPEC has been pumping near record levels since last year in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.
World oil markets will remain oversupplied at least until late 2016, the IEA said in its monthly report. World demand growth of 1.2 million barrels a day (mb/d) is forecast in 2016. The resulting annual growth of 1.8 mb/d for 2015 is led by China, the U.S., India and Europe, the IEA data show.
Baker Hughes reported the overall U.S. drilling rig count plunged 28 units to 709 during the week ended December 11, representing its lowest level since September 17, 1999. It is 1,184 rigs (62.5%) lower than last year. The number of rigs drilling for oil was down 21 at 524. There are 1,022 fewer rigs targeting oil than last year. Rigs directed toward natural gas were up 7 at 185. The number of rigs drilling for gas is 161 lower than last year's level of 346.