Brent oil hit lowest since July 2004

FXStreet (Mumbai) - Brent oil fell to its lowest since July 2004 as traders continue to jump out on increased threat that supply will outstrip demand in 2016.

The futures hit a low of USD 36.09/barrel, before recovering slightly to trade around USD 36.20/barrel. The supplies remain high and the markets are worried about the fresh supplies from Iran as western sanctions are lifted. Extra supplies from the US are also likely to hit the markets as stockpiles continue to rise.

Across the pond, the WTI oil futures trade 22 cents or 0.60% higher at USD 36.00/barrel.