A barrel of Brent oil traded in London, fell on Wednesday below $ 35 for the first time since 11 and a half years ago in a depressed market due to oversupply.
At 10:30 GMT, a barrel of Brent North Sea for February delivery cost $ 34.83 at the Intercontinental Exchange (ICE) in London, its lowest level since July 2004.
“A stronger dollar and concerns that weigh on the demand and supply hinder (oil) prices seriously” explain the analysts of Commerzbank.
These analysts believe that tensions between Saudi Arabia and Iran are negative for crude oil prices, because they make unlikely any agreement within the Organization of Exporting Countries (OPEC) in favor of an action intended to reduce supply and thus hold the prices.
Since mid-2014, crude oil prices have fallen by around 65%.