Brent down for seventh straight day

North Sea benchmark, Brent, which is used globally to price varieties of crude across region is down for seventh consecutive day, ready to drop past its crisis era low.

Some analysts, who survived 2008 crisis said they could still remember the horror and it was December too, when price dropped to its lowest levels in years, trading around $34.2/barrel. However, this time it seems unlikely that price could make any significant reversal, post-December.

We mentioned, over this in our Friday's article on WTI, back in 2008 it was shock, while physical demand was still robust compared to price and supply was much tighter. While in 2015, US, Russia, Saudi Arabia producing at a pace not seen in decades in an already oversupplied market and OPEC remains dysfunctional.

To add to the misery of the bulls, latest IEA revised forecast saying consumption might have peaked and it is likely to increase only by 1.2 million barrels/day in 2016 and also pointed out that long contracts in WTI oil in 2024 are below $60/barrel.

Brent is currently trading at $37/barrel, with a premium of $1.9/barrel to WTI.