The world's oil prices have dropped by 7 per cent at Tuesday's trading session, ending the previous four-day rally and returning to sales that have pushed speculators into a dying market. Bear market.
The sale was on the crude oil market at the same time as the second consecutive day of sale on Wall Street. The Dow Jones index joined over 500 points, after losing almost 400 points on Monday.
Last month, the crude oil and US stocks were sold, as investors flocked to dangerous assets.
"The next concern is that the decline in the stock market reflects the slowdown of economic growth, and the slower economic growth will lead to a greater demand for oil," said Lipow Oil chairman Andrew Lipow. Associates said.
At the end, WTI's raw future in New York lost $ 3.77 per barrel, or 6.6 percent, to $ 53.43 in barrel. During the session, WTI oil prices dropped to $ 52.77 per barrel, the lowest level since October 2017.
In London, $ 443 of Brent wood fell from a barrel, or 6.6 percent, to $ 62.36 a barrel. During the session, Brent oil price dropped to $ 61.71 per barrel, the lowest since December 2017.
Compared to the peak set four years last month, WTI oil prices have fallen by 31%, while Brent's crack has lost 29%.
WTI oil prices so far this year – Source: CNBC.
Investors are increasingly concerned that oil supplies outweigh global demand next year. The market now expects the Institute of Petroleum Exporting Countries (OPEC) and allies, including Russia, to start a new production cut in the next few weeks to prevent excessive oil. Meetings on OPEC and Russian output are held in two weeks.
Oil prices accelerated Tuesday after President Trump made a statement saying that the US would maintain relations with Saudi Arabia following the murder of journalist Jamal Khashoggi.
US media sources say that the Central Intelligence Agency (CIA) has come to the conclusion that Saudi King Mohammed bin Salman kills Mr Khashoggi. However, Mr Trump on November 20 expressed suspicion about the assessment, saying "maybe (that Prince) maybe".
In addition, Trump has recently called for Saudi Arabia and OPEB not to cut production. Keeping energy and low prices is said to be one of the Trump priorities to support the support from US voters.
However, Saudi Arabia analysts say that OPEC will break oil production to help reduce the pressure on goods. Saudi Arabia has indicated that OPEC will cut production by 1.4 million banned per day.
The main reason for the sharp reversal after the peak in October was forecasting the demand for oil in 2019 to increase as expected.
In addition, oil production is the largest oil producers in the world, the United States, Russia and Saudi Arabia, at record levels or nearly. Together, OPEC also promotes oil production.
The pressure to reduce oil prices has increased after the Trump administration enabled eight countries and territory to continue to import Iran's oil for six months not subject to penalties and US. The OPEC decision to raise oil products was triggered by the Washington decision to enforce sanctions against the Iranian oil industry.