Prices of crude oil slumped on Tuesday at the international market, ending four days of price gains.
The slump has been attributed to rising inventory in the global market as concerns grow over possible production cuts by the oil cartel, the Organisation of Petroleum Exporting Countries, OPEC.
Fears of an economic meltdown which led to tumbling of stock markets in Europe and Asia, has also impacted negatively of Crude oil prices.
According to a Reuters report, the global Brent crude futures, the international benchmark for oil prices, were at $66.07 a barrel, down 72 cents, or 1.08 per cent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $56.63 per barrel, down 57 cents, or one per cent.
Russian Energy Minister, Alexander Novak said on Monday that his country, which is not an OPEC member, planned to sign a partnership agreement with the group, and that details would be discussed at OPEC’s December 6 meeting in Vienna, Austria.
The plan by OPEC and Russia to cut supply to the international market followed an increased alarm that supply has started to outpace consumption.
US President Donald Trump had posted a tweet meant to put pressure on OPEC not to cut supply to prop up prices.
Trump’s tweet followed reports that Saudi Arabia was considering a production cut at the December OPEC meeting.
The United States’ sanctions against Iran, which took effect on November 4, are expected to reduce supply to the global market.
However, a US decision to grant waivers to some of Iran’s oil customers, who faced the prospect of a drop-off in supply from the sanctions, has also helped soothe concern about availability of crude.
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