Oil Prices Reach 11-Year Low Amid Oversupply-Driven Slump

© AP Photo / Vahid SalemiFile photo: An Iranian oil worker walks in Tehran's oil refinery south of the capital Tehran, Iran, Monday, Dec. 22, 2014
File photo: An Iranian oil worker walks in Tehran's oil refinery south of the capital Tehran, Iran, Monday, Dec. 22, 2014 - Sputnik International
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Amid global oversupply, world oil prices have continued to plummet, with Brent crude reaching an 11-year low on Monday.

MOSCOW (Sputnik) — Brent crude ICE generic futures stood at $36.33 per barrel, as of 12:00 GMT, while WTI crude reached $34.37 per barrel by 11:55 GMT on the New York Mercantile Exchange (NYMEX). Earlier in the day, the prices had dipped below the 2004 minimum, to $36.08 per barrel and $34.32 per barrel respectively.

Oil rig - Sputnik International
Saudi Conflicts With Iran, Russia Set to Leave Oil Price Low
The continued fall of oil prices has been attributed to Saudi Arabia-led OPEC's unwillingness to cut production out of fear of losing market share. As storage capacities continue to fill, crude prices could plummet to around $20 per barrel, Goldman Sachs and Citigroup banks said last week.

After the US Federal Reserve put up its interest rate to 0.25-0.5 percent last week, a strengthening dollar has also contributed to the slump.

Brent crude prices plunged from $115 per barrel to $48.5 per barrel between June 2014 and January 2015.

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