US oil futures hit 2009 lows as slide in prices resumes

Oil futures continued to slide lower on Monday, slipping below key levels of technical support, after Iran reiterated its intention to increase its supplies to the market in a bid to recover market share lost after economic sanctions were imposed on Tehran.

As of 12:33 front month Brent crude futures were retreating 3.12% to $36.78 per barrel in ICE trading, while West Texas crude futures for delivery in January were down 2.47% to $34.74 per barrel on the NYMEX - their lowest level since 2009.

Speaking to Bloomberg News, Iran´s deputy minister for international and commerce affairs said there was "absolutely no chance" the country would delay increasing its shipments.

His remarks appeared to reaffirm the widely held view that there were still very deep divisions among the Organisation for Petroleum Exporting Countries´s main members over how to proceed to contain the current slide in prices.

In a research note published on 8 December, technical analysts at SocGen told clients that if prompt-month Brent futures "broke" below the $40/39 per barrel level that would suggest renewed bearish pressure that could "potentially send Brent towards $35 with interim levels at $37.50/37.00."

As regards the outlook for West Texas intermediate crude futures, "short-term, the down pointing triangle support line is close at hand ($35.50). In case it gives way, the down trend would fetch $32.00," SocGen analyst Stephanie Aymes said.

Iran had already secured customers for its new supplies, Bloomberg reported.