Brent futures fell below $29, further decline expected

Brent futures fell below $29, further decline expected

On Thursday, U.S. and Brent crude futures slumped to new 12-year lows, taking this year’s losses to more than 20 percent, the worst two-week decline since the 2008 financial crisis, Reuters reports.

Brent futures for March delivery fell $1.94 to $28.94 a barrel, a 6.3 percent loss, by 12:41 p.m. EST (1741 GMT), after touching a session low of $28.82, the lowest since February 2004

U.S. crude fell $2.01 to $29.19 per barrel, a 6.4 percent loss, after hitting a contract low of $29.13, its lowest since November 2003.

Despite oil prices hovering around new multi-year lows, analysts say that prices have not hit the bottom just yet, with demand likely to ease in coming weeks, especially with refiners beginning to shut for routine spring maintenance.

A further fall in prices “cannot be excluded”, said Commerzbank analyst Carsten Fritsch told Reuters Global Oil Forum. He warned that $25 a barrel “is quite possible, but not much lower than that.”

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