Crude oil prices move toward historic lows

NEW YORK, Dec. 21 (UPI) -- Asian economic concerns spilled over to crude oil prices, pushing the global benchmark Brent toward an 11-year low in early Monday trading.

The Chinese government said it was charting a course toward a more forceful financial regime for 2016 in order to keep growth robust.

"China's current proactive fiscal policy needs to be more forceful," a government statement read.

Twin crashes on the benchmark Shanghai Composite Index during the summer were met by steep declines in crude oil prices. Last week, Japan moved to right its economic ship after coming off two consecutive recessions.

West Texas Intermediate, the U.S. benchmark price for crude oil, was down 0.7 percent at the start of trading in New York to $34.48 per barrel. Brent crude oil lost 1.5 percent in early Monday trading to sell for $36.29 per barrel to move within sight of an 11-year low.

High storage levels, high production and slow global economic growth are keeping crude oil prices lower. Oil prices are about 40 percent below this point last year and more than 60 percent lower than peak levels from mid-2014.

Moody's Investors Service in mid-December "sharply" lowered its assumptions for oil prices for 2016 as production far outweighed consumption levels. Though U.S. output is declining under the strain of lower crude oil prices, Iran could be adding more barrels to the global market if sanctions pressures ease next year, it said.

A research note from Goldman Sachs last week said crude oil prices may need to hit $20 per barrel before a balance between supply and demand returns.