Prices tumbled since December 4, when the OPEC oil exporters’ group refused to put a limit on the amount it produces, despite a supply glut, anaemic demand and a slowing global economy.
“While the global oversupply has been persistent, expanding US supplies on warmer weather and low heating demand is putting a further downward pressure on oil,” Kang Yoo Jin, a commodities analyst at NH Investment & Securities, told Bloomberg News.
“As the market generally expects another rate increase in March, oil prices will most likely stay low at least until the first quarter.”
Crude prices extended losses in Asia on Thursday after another report showing a further increase in US stockpiles added to fears about a global glut, while the dollar strengthened after the Federal Reserve hiked interest rates.
The under-pressure commodity suffered fresh selling on Wednesday after the US Department of Energy showed that supplies rose 4.8 million barrels in the week ending December 11.