North Sea benchmark, which is used as a benchmark for almost half of global crude oil sank to its lowest level in 11 years as market opened on Monday, continuing their selloff from last week.

Global oil market is reeling with a supply glut never seen before. US, Saudi Arabia and Russia, three of world's largest producers are pumping crude at record pace, defying drop in oil prices. While in recent days, there has been slowdown in US production, production cost of $20/barrel or less in Saudi Arabia means, they are likely to keep pumping. For Russia, drop in Ruble has reduced cost of production considerably, lower than Saudi Arabia. Supply from Iran is likely to head higher this year by at least half a million barrels per day.

While supply is here to stay, outpacing demand by at least 2 million barrels/day, global oil inventory is sitting at record 3 billion barrels. In US alone, inventory is at level not seen in more than 80 years.

Strong Dollar, post FED hike isn't helping oil either.

Brent is now trading at $36.4/barrel, a level not seen since July, 2004.