Oil prices drops below $48; its lowest in one month
Oil prices, just before Tuesday’s settlement, extended its losses with U.S. Crude oil closing below $48 a barrel for the first time in over a month period.
U.S. West Texas Intermediate futures and Brent crude were seen trading down by more than 2%. The prices were seen contracting as rising output in Canada, Libya and United States offset the news of falling production in OPEC and Russia. bonaz capital
U.S. Crude closed down by 2.8% or $1.35 at $47.49. Brent was down by 2.2% or $1.15 closing at $50.37.
The market is expected to remain oversupplied as U.S. production continues to grow. The market participants will be looking forward to an industry report on U.S. Crude oil and fuel stockpiles along with the government data on Wednesday.
Several analysts expect a rise in fuel inventory.