Crude oil prices hit an 11-year low.

Brent crude fell to $36.06 a barrel on the afternoon of December 21 (Hanoi time) - its lowest level since July 2004 - due to investor concerns about oversupply.

This price is even lower than the low of $36.2 during the peak of the 2008 financial crisis. Meanwhile, WTI crude oil also lost $0.4, falling to $34.32 a barrel.

Global production is near record levels and could increase further due to new supply from Iran and the US. Crude oil prices are also under pressure following last week's US interest rate hike and signs that more oil rigs are being brought online.

Since mid-2014, world crude oil prices have fallen by more than two-thirds due to supply far exceeding demand. Barclays believes prices will fall even further. Morgan Stanley, meanwhile, believes "hopes for market rebalancing in 2016 seem increasingly distant." The firm attributes the oversupply to stronger-than-expected US production, the possibility of Iran pumping at least half a million barrels of oil per day next year, increased Libyan production, and slowing demand.

In addition, production in Russia has exceeded 10 million barrels per day – the highest since the collapse of the Soviet Union. Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) continues to maintain a record high of 31.5 million barrels.

Iranian Oil Minister Adel Abdul Mahdi told Reuters last weekend that OPEC would continue to abide by its decision made earlier this month. They will not cut production, despite falling oil prices. The US has also lifted its 40-year ban on crude oil exports.

According to VNE