Oversupply Fear Leads to Bringing Oil Prices Down

Oversupply fear leads to bringing oil prices down

Feared due to reasons like the return of oil production in Libya, rising COVID-19 cases and increase in the US crude stockpiles, the oil prices fell in early trades on Wednesday. The global supply glut led to investors selling their lot in the market.

The US WTI crude futures December plunged to $41.47 per barrel, a loss of 23 cents or 0.7 per cent. Meanwhile, the Brent Crude Futures fell to $42.94 per barrel, suffering a loss of 0.5 per cent or 22 cents.

Until October 16, the numbers of crude oil inventories rose to approximately 490.6 million barrels by 584,000 barrels in a week. Additionally, the COVID-19 cases crossing 40 million worldwide on Tuesday mounted the pressure on oil prices. Some European nations are imposing strict lockdown rules for curbing the pandemic.

Meanwhile, the OPEC+ is willing to rollback its production cuts from 7.7 million BPD to 5.7 million BPD in the coming January.

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