Oil markets lurched lower yesterday, extending a dramatic collapse which has wiped 13 per cent from already battered prices in just two days. Brent blend crude oil stood at US$9.98 a barrel in late afternoon trade, losing a further 11 cents on top of Thursday's $1.20 slump despite rebounding to $10.35 earlier. Prices are now back within range of 12-year lows of $9.60 set just last week. Brent blend crude, which has fallen from $11.63 a barrel reached only on Wednesday, was seen dropping further as traders refocused on the vast stockpile of oil overhanging the market. Yesterday, despite a second night of bombing in Iraq, the 1.8 million barrels per day (bpd) that it supplies to world markets still seemed to be intact, denting any hopes that the present glut in oil might be eased. The trigger for the collapse had been the break-up of a key meeting in Madrid between three of the world's largest oil exporters - Saudi Arabia, Venezuela and Mexico - without any further pledges of supply cuts to ease the global stockpile of oil. The only achievement from the talks was Venezuela's commitment to extend its reductions by six months to the end of next year, bringing it in line with Saudi Arabia and Mexico. Analysts said this did not make much of a difference to the global stockpile, estimated at 172 million barrels. They said extra cuts of about 1.5 million bpd were needed. Saudi Arabia also said it had won a pledge from Venezuela to make a fresh attempt at reducing supply.