Falling for a third straight session, U.S. crude oil prices settled at their lowest since early October 2017 after dropping more than 1% last Tuesday. Growing fears of slowing global growth have overshadowed the efforts to curb production by OPEC members and its allies, resulting in the fall.
Further, concerns over inventory buildup and forecasts of record shale output in U.S. - currently the world’s biggest producer - coupled with Mexico doubling its oil output has allowed oversupply uncertainties to set in and put pressure on prices.
International benchmark Brent crude oil futures tumbled nearly 71 cents or 1.2% from its last close, to stand at $58.90 per barrel, marking more than a 4% drop over the past three sessions. U.S. West Texas Intermediate (WTI) crude futures tumbled to $49.27 per barrel, dropping by 60 cents or 1.2%.
Both U.S. crude and Brent have dropped more than 30% since early October amid swelling global inventories, with WTI currently trading at or below $50 levels not seen since October 2017.
Some of the biggest names of the U.S. oil industry are feeling the sting, as reflected in stock prices.