LONDON: Benchmark oil contract Brent North Sea crude struck an 11-year low this week before pulling back ahead of the festive break, as the high supply situation dominated trading.
Brent on Monday slumped to $36.04 a barrel — the lowest level since July 2004.
It pulled back to stand at $37.56 on Thursday, a gain of 20 cents on Wednesday’s close, as official data showed an unexpected fall in US commercial crude stockpiles.
“US crude oil inventories posted a surprise drop last week, bucking the seasonal trend of rising stockpiles and offering some lift to… prices,” said Kash Kamal, senior research analyst at Sucden Financial.
However, analysts pointed out that the US report also included some aspects that were less favourable towards addressing an oil supply glut that has sent prices diving more than 60 per cent from above $100 since mid-2014.