Crude oil prices on the global market crashed on Monday to epic lows, as they beat 2008 global economic crisis prices and sank beyond 11-year low with the US vote to lift ban on oil exports.
New data released on Monday, revealed that the price of crude oil in the OPEC basket of twelve crude, stood at 31.63 dollars – an 11-year-low.
The last time the OPEC basket stood at a daily low of less than $32 was in April 2004, when it traded at $31.32.
Brent crude oil prices also fell to levels last seen in 2004, falling to as $36.17 per barrel around 0500 GMT, with production around the world remaining at or near record highs.
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The prices are the weakest since 2004 and below the $36.20 low reached on Christmas eve 2008.
US West Texas Intermediate (WTI) futures were down 33 cents at $34.40 per barrel and close to last Friday’s 2015 lows.
This comes only a few days after the US voted to lift a 40-year-old ban on crude exports which could see some of its excess production sold on the global market.
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Analysts say lifting of the ban would increase the already increasing oversupply of global crude and drive prices to new lows in 2016.
Meanwhile, the Nigerian government has pegged its oil benchmark for the 2016 fiscal year at $38.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
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