Brent crude prices hit their lowest in over 11 years on Monday, hounded by a relentless rise in global supply that looks set to outpace demand again next year.

Oil production is running close to record highs and, with more barrels poised to enter the market from the likes of Iran, the United States and Libya, the price of crude is set for its largest monthly percentage decline in seven years.

While consumers have enjoyed lower fuel prices, producers have cut spending and thousands of jobs and the world's richest exporters have been forced to revalue their currencies, sell off assets and even issue debt for the first time in years as they struggle to repair the holes in their finances.

OPEC, led by Saudi Arabia, will stick with its year-old policy of compensating for lower prices with higher production, and shows no signs of wavering, even though every dollar lower in the oil price brings fresh pain to its poorer members.

Brent futures LCOc1 fell by about 2 percent to as low as $36.05 per barrel on Monday, their weakest since July 2004, and were down 41 cents at $36.47 at 1115 GMT.

Brent crude prices have dropped by nearly 19 percent this month, their steepest fall since the collapse of failed U.S. bank Lehman Brothers in October 2008.

U.S. crude futures CLc1 dropped 31 cents to $34.42 a barrel, their lowest since 2009.

"With OPEC not in any mood to cut production ... it does mean you are not going to get any rebalancing any time soon," Energy Aspects chief oil analyst Amrita Sen said.

"Having said that, long-term of course, the lower prices are today, the rebalancing will become even stronger and steeper, because of the capex cutbacks ... but you're not going to see that until end-2016."

Investment bank Goldman Sachs (GS.N) believes it could take a drop to as little as $20 a barrel for supply to adjust to demand.

The price of oil has halved over the past year, dealing a blow to economies of oil producers such as Nigeria, which faces its worst crisis in years, or Venezuela, which has been plunged into deep recession.

Even wealthy Gulf Arab states have been hit. Last week Saudi Arabia, Kuwait and Bahrain raised interest rates as they scrambled to protect their currencies.

"Really, I wouldn’t like to be in the shoes of an oil exporter getting into 2016. It's not exactly looking as if there is light at the end of the tunnel any time soon," Saxo Bank senior manager Ole Hansen said.

Reflecting the determination among the biggest producers to woo buyers at any cost, Russia now pumps oil at a post-Soviet high of over 10 million barrels per day (bpd), while OPEC output is close to record levels above 31.5 million bpd.


http://uk.reuters.com/article/uk-global-oil-idUKKBN0U401220151221

Finally our leaders will be forced to think outsider oil.

nnachukz:
Finally our leaders will be forced to think outsider oil.

They will be forced to leave Our oil and face cocoa and groundnut....

Anyway the problem is not even the price but Nigeria have about 25 million barrels on the high sea no Buyer...
They should allow those who wants to leave this dying country to go no be by force to be brothers wuoo

And the illiterate wailers want Buhari to perform magic.

Fuel sold at $120 per barrel during gej regime but we have nothing to show for it. Just assume gej was our president this country would have through hell

Since the oil price has fallen, why are we still buying it at higher price here in Nigeria?

Onyejiuwaokoh:
Since the oil price has fallen, why are we still buying it at higher price here in Nigeria?

The company that refines dictates the price it's willing to sell. Also, the fall in the value of naira is not helpful.

abduljabbar4:
And the illiterate wailers want Buhari to perform magic.

Fuel sold at $120 per barrel during gej regime but we have nothing to show for it. Just assume gej was our president this country would have through hell

according to the news same low price occured in 2004 but OBJ and PDP didn't go about blaming the millitary, abeg we are tired of this una nonesense blame game

abduljabbar4:
And the illiterate wailers want Buhari to perform magic.

Fuel sold at $120 per barrel during gej regime but we have nothing to show for it. Just assume gej was our president this country would have through hell

Unfortunately wailing wailers seem not to comprehend this simple point. Our currency is tied to the fate of oil prices and because GEJ delved a deadly blow to our currency reserves by sharing hard currency through santasuki.

The simple rule in life is "in time of plenty harvest reserve and keep for the rainy days" GEJ thought otherwise.

igwe123:

according to the news same low price occured in 2004 but OBJ and PDP didn't go about blaming the millitary, abeg we are tired of this una nonesense blame game

Obj still had something left when he came to power but Gej looted everything in the treasury including monies he borrowed to fight insecurity.

[size=28pt]Thank You Lord and God!![/size]

vedaxcool:


Unfortunately wailing wailers seem not to comprehend this simple point. Our currency is tied to the fate of oil prices and because GEJ delved a deadly blow to our currency reserves by sharing hard currency through santasuki.

The simple rule in life is "in time of plenty harvest reserve and keep for the rainy days" GEJ thought otherwise.

Even the borrowed ones were not spared by gej, the hero of corruption

abduljabbar4:
And the illiterate wailers want Buhari to perform magic.

Fuel sold at $120 per barrel during gej regime but we have nothing to show for it. Just assume gej was our president this country would have through hell

nobody has asked buhari to perform magic rather they want him to start performing. And for your info oil only contributes about 20% to our GDP, a govt with ideas would look at other sectors of the economy that contribute over 80% to raise founds, plus you do not need the price of crude oil to attract FDI that can be achieved by putting a place a promising economic plan.

The last govt saw this coming reason the 2015 budget was planned to be funded by the non oil sector by over 60% I think.

abduljabbar4:


Obj still had something left when he came to power but Gej looted everything in the treasury including monies he borrowed to fight insecurity.

Lol, GEJ looted more than Abacha and Abdulsalam?? is that how ur incompetent god will waste his tenure diverting attention??

igwe123:

Lol, GEJ looted more than Abacha and Abdulsalam?? is that how ur incompetent god will waste his tenure diverting attention??

The wailers are the most foolish people on earth. Is Buhari the one in charge of the EFCC? Everyone is busy with his own duty