Caspian Energy Journal Caspian European Club
Wednesday, 14 November 2018 11:00

Oil plummets on global demand concerns

Oil plummets on global demand concerns

Oil prices plunged 7 percent on Tuesday on persistent concerns of oversupply and weakening global demand, causing Wall Street stocks to reverse early gains that were driven by the resumption of trade talks between the United States and China, Caspian Energy News ( reports with reference to Reuters.

The U.S. benchmark S&P 500 stock index ended lower as energy stocks declined with the fall in prices of Brent and U.S. crude futures.

U.S. crude touched its lowest level in a year, and Brent also extended Monday’s fall, which was triggered when U.S. President Donald Trump put pressure on OPEC to not cut supply to prop up prices. Both crude benchmarks have fallen more than 20 percent since peaking at four-year highs in early October.

U.S. crude futures settled down $4.24, or 7.1 percent, to $55.69 a barrel. It was the largest one-day percentage decline for the contract since September 2015. Brent ended down $4.65, or 6.6 percent, to $65.47 a barrel, its largest one-day loss since July.

Earlier, U.S. stocks rose after White House economic adviser Larry Kudlow said Washington had resumed trade talks with China, calling the development “very positive.”

The U.S. dollar index, which has steadily climbed as the U.S.-China trade dispute has escalated, dipped 0.2 percent but remained near a 16-month high reached on Monday.

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Person in charge of the newsline: Olga Nagiyeva 

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