Crude falls further below $40

After positive signs of improving crude prices, hopes faded again on Tuesday, as prices dipped further below $40 per barrel.

The further fall in prices may not be unconnected the reluctance of major crude producers to freeze output levels to ease a world surplus.

The United States benchmark West Texas Intermediate for delivery in April was down by $1.11 at $36.07 per barrel while the Brent North Sea crude for May delivery slid 96 cents to $38.57 a barrel.

Read also: Oil prices to remain low for next decade, experts forecast

“The price of Brent crude has fallen four of the last six days, its worst run in three weeks as chances become more remote of a joint output freeze amongst OPEC and non-OPEC producers while Iranian production ramped up significantly last month,” said CMC Markets analyst Jasper Lawler.

Though a meeting was proposed by Russia and Saudi Arabia to discuss output limits on March 20, it has been shifted to April, when it became apparent that some key producer-nations may not support supply freeze.

Prices first slid on Monday when Iran signalled that it may not join any supply freeze until it’s output reaches pre-sanction level of 4 million barrels per day.

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