■ Oil market to end 2015 in downbeat mood; hangover to be long, painful

NEW YORK/LONDON (Reuters) - Oil prices steadied on Thursday but were still headed for a second year of steep declines after a race to pump by Middle East crude producers and U.S. shale oil drillers created an unprecedented global glut that may take through 2016 to clear. Global oil benchmark Brent and U.S. crude's West Texas Intermediate (WTI) futures were on track finish 2015 down more than 30 percent after another year that showed the helplessness of Saudi Arabia and others in the once-powerful Organization of the Petroleum Exporting Countries (OPEC) to support oil prices. The U.S. shale industry, meanwhile, surprised the world again with its ability to survive rock-bottom crude prices, churning out more supply than thought, even as the sell-off in oil slashed by two-thirds the number of drilling rigs in the country from a year ago. [RIG/U] The United States also took a historic move in repealing a 40-year ban on U.S. crude exports to countries outside Canada, acknowledging the industry's growth. "You do have to tip your hat to the U.S. shale industry and their ongoing ability to drive down costs and hang in there, albeit by their fingernails," said John Kilduff, a partner at Again Capital, an energy hedge fund in New York. Brent crude (LCOc1) was up 30 cents at $36.76 a barrel by 10:13 a.m. EST (1513 GMT), rebounding from a near 11-year low of $36.10 earlier in the session. For the month, it was down 17 percent and for the year, it fell 36 percent. In 2014, Brent lost 48 percent. WTI (CLc1) rose 13 cents to $36.73 a barrel. It slid 12 percent in December and 31 percent for the year, after a 46 percent loss in 2014.

■ Oil on track to end dismal 2015 near 11-year lows

Oil prices were on track to end the year near levels not seen in over a decade on Thursday, as the curtain begins to fall on 2015. West Texas Intermediate oil futures are on track to post an annual decline of 31% in 2015, while Brent oil prices are down nearly 36%, as oversupply concerns dominated market sentiment for most of the year. Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share. In recent trade, crude oil for delivery in February on the New York Mercantile Exchange shed 32 cents, or 0.86%, to hit $36.29 a barrel during U.S. morning hours. Prices touched $34.29 earlier this month, the lowest since February 2009. On Wednesday, U.S. oil futures tanked $1.27, or 3.35%, after the U.S. Energy Information Administration said crude oil inventories increased by 2.6 million barrels last week, disappointing expectations for a drop of 2.5 million barrels. Total U.S. crude oil inventories stood at 487.4 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years. Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery dipped 18 cents, or 0.48%, to trade at $36.28 a barrel. A day earlier, London-traded Brent futures dropped $1.33, or 3.52%. Brent Prices slumped to $35.98 on December 22, a level not seen since July 2004.