Crude prices fell over 3 percent on Monday with Brent back near 11-year lows and trading lower to U.S. crude, pressured by weak Japanese consumption of oil and renewed worries about oversupply.
Crude futures slumped in Asian trading as Japanese data showed a 46-year low in oil sales in the world's fourth largest crude buyer. They slid more in the New York session, as some traders reckoned the two-day pre-Christmas rebound, where crude rose about $2 a barrel, had been overdone.
"Volume isn't great, which is typical for this time of year, and most guys are either flat on their books and positioning themselves for a weaker first quarter in 2016," said Tariq Zahir, an oil bear at Tyche Capital Advisors in Long Island, New York.
Brent was down $1.28 at $36.61 a barrel by 2:30 p.m. EST. It had hit a 2004 low of $35.98 on Tuesday.
U.S. crude's West Texas Intermediate (WTI) futures settled at $36.81, down $1.29, or 3.39 percent. Oil bears are looking to beat WTI's previous low of $32.40 in December 2008.