Oil prices recover slightly

Oil prices rose slightly on Tuesday, with Brent prices bouncing back from 11-year lows caused largely by a global oversupply of crude.

Approaching midday in London, Brent North Sea crude for delivery in February stood at $36.43 a barrel, up eight cents compared with Monday’s close.

On Monday, Brent slumped to $36.04 — the lowest level since July 2004.

Elsewhere Tuesday, US benchmark West Texas Intermediate (WTI) for delivery in February was 22 cents higher at $36.03 a barrel.

Crude futures are heading for a second annual loss on signs that a global glut will be prolonged as OPEC seeks to maintain market share in the face of fierce competition from North American shale oil producers.

Brent slumped on Monday amid speculation suppliers from the Middle East to the United States will continue pumping, exacerbating the surplus as they fight for market share.

“It’s all about market share and bravado at the moment,” Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney, told Bloomberg News.

Crude prices have sunk more than 60 percent from above $100 in summer 2014 owing to the oversupply as well as weak oil demand growth, a global economic slowdown and a strong dollar.