Getting even cheaper: Oil falls to 11-year low

The drop is in line with signals that global oil supply will again exceed demand next year.

Brent crude oil prices fell further than U.S. crude prices as the market anticipated the end of a 40-year-old ban on U.S. crude oil exports. President Barack Obama signed a rule on Friday (18/12/2015) that lifted the ban on crude oil exports.

Brent crude fell 51 cents to $36.35 a barrel, its lowest since July 2004.

While U.S. crude rose 1 cent to $34.74 a barrel after tumbling to $33.98 a barrel.

"The fundamentals are very bearish. The warm weather is killing the market and the overhang of supply is weighing on prices," said Phil Flynn, analyst at Price Futures Group in Chicago, as quoted from Reuters.

Although consumers enjoy low fuel prices, major oil exporters were forced to re-evaluate their currencies, sell their assets and even announce debts for the first time as they try to improve their financial condition.

OPEC, led by Saudi Arabia, continued with their policy to flood the market with their high production. The policy was not expected to change despite the fact that lower prices will burden the cartel members.