Crude oil futures settled under the $40-a-barrel mark for first time since late August on Wednesday amid concerns about global demand and a U.S. interest rate hike.
Official data confirmed the U.S. crude oil stocks rose for the tenth straight week last week.
Also, it is expected that OPEC will not cut production after its meeting in Vienna despite complaints from some members struggling to cope with low prices.
January oil was down $1.91, or 4.6%, to settle at $39.94/bbl on Nymex.
Earlier today, Fed Chair Janet Yellen acknowledged that conditions for a rate hike are on the verge of being met.
“I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market,” Yellen said.
The material has been provided by InstaForex Company – www.instaforex.com