<div>Brent crude oil hit a fresh five-year low close to $60 a barrel on Monday (15 December) after producer group OPEC restated its determination not to cut output despite a global fuel glut, but the North Sea benchmark later rallied to around $63.</div><div> </div><div>Market momentum appeared to be downwards, with analysts saying oil could plumb new depths before a sustained recovery.</div><div> </div><div>Oil prices have collapsed over the last six months as high-quality, light crude from North America has overwhelmed demand at a time of lacklustre global economic growth.</div><div> </div><div>The Organization of the Petroleum Exporting Countries has kept production steady, worried that any reduction in its output would have little impact on price and instead mean surrendering market share.</div><div> </div><div>"The decision has been made. Things will be left as is," OPEC Secretary-General Abdullah al-Badri told a conference in Dubai on Sunday. "We agreed that it is important to continue with production (at current levels) for the ... coming period."</div><div> </div><div>Brent for January fell to a low of $60.28 a barrel in Asian trade, down $1.57 and its lowest since July 2009. The futures contract then rallied to trade around $62.85 by 1015 GMT, up $1.00.</div><div> </div><div>US crude for January was trading at $58.50 a barrel, up 69 cents, after hitting a low of $56.25 earlier in the day - its weakest level since May 2009.</div><div> </div><div>Analysts said Monday's bounce was partly speculative buying, and partly a reaction to news that Libya's two biggest oil ports had shut due to fighting between armed factions allied to the country's two rival governments.</div><div> </div><div>"The market may just have moved down too far too quickly today," said Tamas Varga, energy analyst at London brokerage PVM Oil Associates. "It was a bit overdone and people may be 'bottom-picking'."</div><div> </div><div>Analysts have cut oil price forecasts sharply over the last few weeks.</div><div> </div><div>"Oil prices may move below $60 per barrel in the near term," analysts at Barclays Bank said, but added that "this (level) is not sustainable in the long run".</div><div> </div><div>Barclays said it expected Brent to average $67 per barrel in the first half of 2015 and $78 in the second half of next year.</div><div> </div><div>National Australia Bank said on Monday it cut its Brent forecast to $80 in the fourth quarter of 2014, $75 in the first quarter of 2015 and an average of $80 for all of next year.</div>
