Crude oil prices continued their global rout, sustaining the downtrend following last week’s report of an additional buildup in US crude stockpiles, fueling worries of a worsening global glut that has already left prices struggling to recover from multi-year lows. Adding to the declines was the latest Baker Hughes figure from Friday which showed the amount of drill rigs for oil and gas in America rising by 17 rigs in the latest week in a sign of growing production in the pipeline. Prices have faced strong headwinds for months, plunging more than 40% since the start of the year. Analysts forecast more of the same in the coming year as major oil producers including OPEC and Russia continue to pump at a breakneck pace in a bid to compete for market share. Brent fell from Friday’s high of $37.53 to $36.17 on Monday, marking the lowest level in 11-years.
Bank of Canada Concerned by Outlook
Daily Analysis - 21/12/2015