Investing.com - Oil futures extended sharp losses from the previous session on Tuesday to trade at the lowest level since 2009 as investors added to their short positions in anticipation of lower prices amid lingering concerns over ample global supplies.
On the ICE Futures Exchange in London, Brent oil for January delivery fell by as much as 1.35% to touch a session low of $65.29 a barrel, a level not seen since October 2009, before trading at $65.61 during European morning hours, down 58 cents, or 0.88%.
A day earlier, London-traded Brent prices lost $2.88, or 4.17%, to settle at $66.19 a barrel.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January dropped 27 cents, or 0.43%, to trade at $62.78 a barrel, after hitting a daily low of 62.30, the weakest level since July 2009.
Nymex oil futures plunged $2.79, or 4.24%, on Monday to end at $63.05 a barrel.
London-traded Brent prices have fallen nearly 43% since June, when it climbed near $116, while WTI futures are down almost 41% from a recent peak of $107.50 in June.
The Organization of Petroleum Exporting Countries said on November 27 that it would maintain its output target at 30 million barrels a day, disappointing hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.
Saudi Arabia’s state-run oil company lowered official selling prices for its crude in January last week to the lowest in at least 14 years for buyers in the U.S. and Asia.
The move suggested that the kingdom is stepping up a battle for market share with cheaper U.S. shale oil after last week's OPEC decision to keep production quotas unchanged.
Oil traders looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles declined by 2.8 million barrels in the week ended December 5.