Oil dropped a second day after US crude stockpiles expanded again, keeping supplies at the highest level in more than eight decades.
Oil fell as the dollar strengthened against the euro after two explosions ripped through the Brussels airport departure hall on Tuesday morning.
Oil rose above $42 a barrel on Friday, hitting its highest this year and extending a rally into a fourth week on expectations of a production freeze by major exporters, stronger seasonal demand and dollar weakness.
Oil advanced to $40 a barrel in London for the first time since December as U.S. drillers cut the number of active rigs to the least in more than six years amid a global glut.
Oil capped the biggest weekly gain since August amid signs of strengthening US fuel demand and speculation that some producers will complete an accord to freeze output.
Oil extended declines after Iran said a proposal by Saudi Arabia and Russia for producers to freeze output was “ridiculous” as the Persian Gulf nation seeks to boost exports after years of sanctions.
JP Morgan will set aside an additional half a billion dollars to cover potential bad loans to oil and gas companies in the first quarter, underlining the sharp deterioration in the U.S. energy sector.
The influential International Energy Agency sees oil markets rebalancing in 2017 thanks to falling US production but the decline will prove short-lived as efficiency gains will push U.S. output to new records by the beginning of the next decade.
The rebound on London’s top flight index picked up pace as a rally in the mining sector helped it build on recent gains.
A brief rally in the cost of crude was brought to an abrupt halt after global oil giants failed once more to agree on production cuts, instead freezing output at its highest-ever level.
Russia has agreed with Opec members Saudi Arabia, Qatar and Venezuela to freeze oil production levels if other producers do the same.
Markets are currently in a well-oiled "death spiral," according to Citigroup analysts.
London’s FTSE 100 made modest gains, as a continued rally from heavyweight miners and a profit swing for oil and gas company BG Group pushed the index higher.
Oil dropped to a new 12-year low below $30 a barrel in New York, while the discount on global benchmark Brent reached a five-year high as Iran moved closer to restoring exports.
The average Brent crude oil price for 2016 is likely to be $40 per barrel and unlikely to rise above $50 ber barrel in 2017, according to the US Energy Information Administration.
London’s blue chip share index has tumbled deeper into the red amid a global stock market rout sparked off by woes in China and plunging oil prices.
The ramping up of tension between Saudi Arabia and Iran makes it highly unlikely Saudi Arabia will cut its output to help Iran regain market share, according to Wood Mackenzie.
The London market opened on the back foot on the final day of the year, as oil prices loitered close to 11-year lows.
Investors are losing faith in an oil-price recovery next year as Iran prepares to add more crude to a global glut.
Oil neared the lowest level since February 2009 as U.S. crude inventories surged and the Federal Reserve raised interest rates for the first time in almost a decade.
An end to the U.S.’s 40-year ban on oil exports is probably not what OPEC needs right now. Yet a resurgent Iran may present a greater threat as it prepares to dump a million barrels on the market next year.
Oil declined to the lowest level since 2008 in London amid estimates that OPEC’s decision to scrap production limits will keep the market oversupplied.
OPEC raised crude output to the highest in more than three years as it pressed on with a strategy to protect market share and pressure competing producers.
Oil prices bounced back today after hitting near-seven year lows, but mining stocks remained under pressure on the London market amid fears over the global economy.
OPEC has agreed to set a new oil-output ceiling of 31.5 million barrels a day, according to a delegate with knowledge of the decision.