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The international crude oil prices, suffering from increasing supplies from the U.S. to Russia, posted their biggest decline in more than three weeks. On Tuesday, futures fell by 7.3 per cent in New York, putting prices on track for their worst quarterly loss since the start of the last oil market crash in late 2014.
January delivery of West Texas Intermediate (WTI) declined by $3.64 to $46.24 a barrel on the New York Mercantile Exchange, which is reported to be the lowest since August 30, 2017. The t total volume traded was about 23 per cent above the 100-day average. Brent for February settlement also lost $3.35 to $56.26 on London’s ICE Futures Europe exchange.
The sharp decline in the prices of crude oil in the global market might be due to the fear of rising glut in the market, as U.S. government report released on Monday forecasted climbing shale-oil production.
Russian Energy Minister Alexander Novak stated that the production is rising, although the country is preparing to implement output curbs to conform with an OPEC+ accord. The market is facing jitters due to the ongoing clash between China and USA, as Chinese President Xi Jinping appeared to push back against U.S. President Donald Trump in a Beijing speech.
