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MTECHTIPS:-Brent oil futures crash to lowest since October 2009

MTECHTIPS:-Brent oil futures crash to lowest since October 2009

Brent oil futures tumbled to the lowest level since 2009 on Monday, as concerns over the global economic outlook and the impact on future oil demand prospects continued to dampen the appeal of the commodity. On the ICE Futures Exchange in London, Brent oil for January delivery fell by as much as 3.28% to touch a session low of $66.80 a barrel, the weakest level since October 2009, before trading at $67.19 during U.S. morning hours, down $1.89, or 2.73%. On Friday, London-traded Brent prices lost 57 cents, or 0.82%, to settle at $69.07 a barrel. Data released earlier showed that China’s exports climbed 4.7% from a year earlier in November, missing expectations for a 7.9% increase, while imports fell 6.7%, compared to forecasts for a gain of 3.5%. The country’s trade surplus widened to $54.5 billion last month from $45.4 billion in October, compared to estimates for a surplus of $43.2 billion. Separately, revised data showed that Japan’s economy shrank by an annualized 1.9% in the third quarter, more than the preliminary estimate of a 1.6% decline. On a quarter-over-quarter basis the economy contracted by 0.5% in the three months to September, compared to a preliminary estimate of a 0.4% contraction. Wall Street investment bank Morgan Stanley cut its price forecast for Brent crude to $70 from $98 and for 2016 to $88 from $102. “Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015,” the bank said in a report on Monday. Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January dropped $1.38, or 2.09%, to trade at $64.47 a barrel, after hitting a daily low of 64.11.
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