The prices of crude oil again fell on Thursday after a marginal rally on Wednesday by more than one per cent.
Prices had rebounded more than on Wednesday only to fall on Thursday as worries over a glut in crude supply and concerns over a faltering global economy pressured prices.
Brent crude oil was down 70 cents, or 1.3 per cent, at 53.77 dollars a barrel by 0845 GMT.
US light crude oil was 50 cents lower at 45.72 dollars.
it would be recalled that oil prices reached multi-year highs in early October but have fallen almost 40 per cent since then and are now approaching their lowest levels for 18 months.
Brent is heading for losses of almost 30 per cent this year while the US contract has dropped almost 25 per cent.
Though it looked as if the global market was going to be undersupplied three months ago through the northern hemisphere winter as US sanctions removed large volumes of Iranian crude.
But other oil exporters have more than compensated for any shortfall, filling global inventories and depressing prices.
The fuel glut has combined with faltering investor sentiment in other asset classes, producing a bear market for oil.
Global stocks rebounded on Wednesday after US President Donald Trump’s administration attempted to shore up investor confidence and a report on strong US holiday spending.
The Organisation of the Petroleum Exporting Countries, OPEC, at its meeting in Vienna early in the month of December alongside other producers led by Russia, agreed to reduce output by 1.2 million barrels per day (bpd), equivalent to more than one per cent of global consumption.
The cuts will however take effect in January, 2019 and oil production has been at or near record highs in the United States, Russia and Saudi Arabia, with the US pumping 11.6 million bpd of crude, more than both Saudi Arabia and Russia.
Although US sanctions have put a cap on Iran’s oil sales, Tehran has said its private exporters have “no problems” selling its oil.
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