Oil prices is set to fall below the $40 per barrel, according to an analyst at Energy Aspects, as Crude oil seems set to post its deepest fall in the first few months of the year since many years ago.
In just 6 months, the Oil prices have tumbled more than 20 percent, hitting a new record low and marking its worst performance of the year since 1997 and putting the commodity in the bear market territory.
The ongoing drop in the price of crude oil appears to have stemmed from the investors and disregarding evidence of a robust compliance from both OPEC and non-OPEC producers with an agreement to solve the global problem of a supply overhang.
Libya’s oil production was up by more than 50,000 barrels per day, taking its daily production to 885,000 barrels per day, a Libyan source told Reuters. Meanwhile, exports of Nigeria’s benchmark Bonny Light crude oil are set to again to increase by 62,000 barrels per day in March.
The output from the members of the OPEC group inched higher in may because of the rising production in Nigeria, Libya and Iraq.
Brent Crude Oil inched up temporarily and was traded at $46.16 per barrel in the early afternoon which was 0.28 percent climb. The U.S. WTI Crude was traded at around $43.70 per barrel, which was up by 0.44 percent.