Investing.com - Oil futures started the week deep in the red on Monday, with Brent prices falling to the lowest level since March 2009 after OPEC left its production levels unchanged despite a global supply glut.
On the ICE Futures Exchange in London, Brent oil for January delivery tumbled $1.16, or 2.71%, to trade at $41.84 a barrel during European morning hours. It earlier fell to $41.81, a level not seen in more than six years.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange sank $1.44, or 3.6%, to trade at $38.53 a barrel. Nymex crude hit $38.59 earlier, the lowest since August 25.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.31 a barrel, compared to $3.03 by close of trade on Friday.
The Organization of the Petroleum Exporting Countries failed to agree on output targets to reduce an oil glut that has cut prices by more than 60% since June 2014. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.
The 12-member group produced approximately 31.5 million barrels per day last month. Global crude production is outpacing demand following a boom in U.S. shale oil and as OPEC opted not to cut production in order to defend market share.
Meanwhile, a broadly stronger U.S. dollar further weighed. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.55% at 98.81.
Demand for the greenback was boosted as Friday's strong U.S. jobs data solidified expectations for a December rate hike by the Federal Reserve.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.