Brent crude and West Texas Intermediate are trading higher after marking new 5-1/2 year lows in early trading. Brent Crude is up +1.15% trading currently at USD62.56 a barrel and West Texas Intermediate added +0.66% currently quoted at USD58.19. Both benchmarks have collapsed about 20 percent since Nov. 26, the day before the Organization of Petroleum Exporting Countries agreed to leave its production limit unchanged at 30 million barrels a day. Saudi Arabia, Iraq and Kuwait, the group's three biggest members, this month deepened discounts on shipments to Asia, bolstering speculation that they're fighting for market share.

Today prices were supported after Libya announced today it was unable to load at two ports. Markets remain under pressure after Friday's forecasts of the IEA that global demand growth will decline. The IEA cut its 2015 global oil demand growth forecast for the fourth time in five months by 230,000 barrels per day to 0.9 million barrel per day due to oversupply and a weaker global economy. OPEC gave the same forecast, the lowest since 2003, in its monthly report on Dec. 10. Markets will remain volatile before the FED's meeting and China data due on Tuesday.