Oil prices plummeted below $40 a barrel amid an increasing oversupply, further pressuring the industry.
Crude oil futures settled at $39.94 in New York, down 4.6%. Brent closed at $42.49 on ICE Futures Europe, down 4.4%. Oil prices last ended below $40 in the United States last August, when woes regarding the global economy affected financial markets.
OPEC producers and the US are embroiled in a battle for market share, which has left the world flooded with oil. For the last several months, Saudi Arabia has led a policy of escalating oil output to pressure weaker American counterparts in the US and other nations.
Meanwhile, the Organization of the Petroleum Exporting Countries is scheduled to meet this week.
The material has been provided by InstaForex Company – www.instaforex.com