Crude Oil Continues Downside Move Amid Massive Supply
Crude oil prices in Asia on Tuesday failed to hold gains from the U.S. as investors continued to monitor massive over supply.
On the New York Mercantile Exchange, WTI crude for January delivery fell 0.185% to $36.25 a barrel. Ahead on Tuesday, the American Petroleum Institute will release estimates of U.S. crude and refined product stockpiles held last week. That will be followed Wednesday by more closely-watched figures from the U.S. Department of Energy.
Overnight, U.S. crude futures rallied in afternoon trading amid heavy profit taking, after briefly dropping below $35 a barrel earlier in Monday’s session to fall to fresh multi-year lows.
With the strong gains, U.S. crude futures ended a seven-day losing skid when they plummeted by roughly 13% to six-year lows. WTI crude is approaching its lowest level since the Financial Crisis when it slumped to $32.40 in December, 2008.
On the Intercontinental Exchange (ICE), Brent crude for January delivery wavered between $36.76 and $38.68 a barrel, before closing at $38.15, down 0.17 or 0.49% on the day. North Sea Brent futures are close to falling to their lowest level since mid-2004 when they traded at $36.20.
Investors continued to digest bearish forecasts from last week, as energy market worldwide remained oversaturated by a glut of excess supply. On Friday, the International Energy Agency (IEA) projected that global demand growth will slow considerably over the next year, increasing the gap in the supply-demand imbalance worldwide.