Economic news

Oil prices reached seven-month lows due to global oversupply

Oil prices fell to seven-month lows on Tuesday after news of increased supply on by a few key producers, which has undermined attempts by OPEC and other producers to prevent oversupply of raw materials through production cutbacks.

Brent crude was down $1.06 to a low of $45.85 per barrel, its lowest level since 18 November 2016, just before OPEC and other producers agreed to reduce oil production to 1.8 million barrels a day within for six months from January 2017.

Brent crude trading around $46.00, the price fell 91 cents.

The U.S. crude oil futures fell 98 cents to $43.22, the lowest level since November 14, before recovering to $43.30.

Both brands fell more than 15% since late May, when OPEC, Russia and other producers have extended production cuts until the end of March 2018.



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