Brent falls to 2004 low as th US lifted ban on crude exports

Brent crude fell to levels last seen in 2004 on Monday, dropping under the lows hit during the 2008 financial crisis on renewed worries over an oil glut, with analysts saying prices could head lower still.

 

Global production remains at or near record highs and new supply looms from Iran and the United States. Crude markets are also under pressure following last week's U.S. interest rate hike and from signs of growing U.S. stockpiles even as more drilling rigs are deployed.

 

Brent futures fell around 2 percent to as low as $36.06 per barrel on Monday, the weakest since July 2004 and below even the $36.20 mark reached during the peak of the global financial crisis of 2008.

 

U.S. West Texas Intermediate (WTI) futures dropped 41 cents to $34.32 per barrel, holding near last week's 2015 lows.

 

Due to production far outpacing demand, the benchmarks have fallen more than two-thirds since mid-2014, when the rout began, and analysts said there was an increasing risk of further falls.

 

This comes only days after the U.S. voted to lift a 40-year-old ban on crude exports, which could see some production released on the global market.

 

More oil becoming available soon will add to the glut, with Iran hoping to ramp up sales in early 2016 once sanctions against Tehran are lifted.