Oil prices fell nearly 3% on Thursday, and U.S. crude oil futures hit their lowest level since April, amid growing concerns that global demand is weakening amid surging production in the world's major oil producers.
Both the United States and Russia have record production, and the sharp rise in OPEC output has led to speculators'withdrawal.
Worries about the possible slowdown in global economic growth have also pushed oil markets under pressure. Sino-US trade disputes remain unsolved, and they are beginning to impact the global economy, especially the emerging market economies.
Crude oil prices in the US are 17% lower than those hit at the beginning of October. Analysts said they expect more selling in the next few days. They pointed out that oil prices failed to take advantage of the dollar weakness on Thursday and failed to benefit from the stock market rally.
Brent crude fell $2.15, or 2.9%, to $72.89 a barrel, while U.S. crude fell $1.62, or 2.5%, to $63.69 a barrel, the lowest closing price since April 9.
On Thursday, the US downtrend accelerated when crude oil futures fell below US $65. 65 dollars is considered a buying level throughout the spring and summer. More than 750 million contracts have changed hands, more than 200 days, mobile level is 576 million.
Both indicators recorded the largest monthly percentage decline since July 2016, with Brent crude oil falling 8.8% and U.S. crude oil falling nearly 11%.
The U.S. Department of Energy said Wednesday that U.S. crude oil production reached a record 11.35 million barrels a day in August and is expected to continue to grow. Russia's output is 11 million 410 thousand barrels per day. According to a Reuters survey, crude oil production by the Organization of Petroleum Exporting Countries (OPEC) rose to its highest level since 2016 in October.
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