Oil drops further

*Oil prices drop.

*Oil prices drop.

14 December 2015 – Crude oil futures slipped in early Asian trade, adding to a slump on Friday following a forecast from the International Energy Agency (IEA) that the global glut of oil is likely to deepen next year.

Brent crude, the global benchmark, fell below $38 a barrel for the first time since December 2008 on Friday after the IEA said demand growth is slowing, while Opec output remains high, pointing to a bigger glut in coming months.

The US benchmark, West Texas Intermediate, settled in $35 territory for the first time since February 2009, paring earlier losses after data showed that US drillers cut the number of oil rigs to the lowest since April 2010.

Front month WTI was down by 14 cents at $35.48 a barrel early on Monday, after falling 3.1% on Friday and 11% for the week.

Brent declined by 5 cents to $37.88 a barrel, following a decline of 4.5% on Friday and 12% on the week.

Both of the oil benchmarks have fallen every day since Opec on 4 December abandoned its output ceiling.

The group has been pumping near record levels since last year in an attempt to drive higher-cost producers such as US shale players out of the market.

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