WTI Crude Oil prices tumbled nearly 4 percent on Monday on concern that record Iraqi crude exports and rising US output would undermine OPEC's efforts to curb global oversupply.
The commodity has not been able to surpass $ 55 per barrel levels, witnessing consistent selling pressure in last few days.
MCX Crude Oil futures slipped well under Rs 3,600 per barrel as a drop from highs above Rs 3,700 extended.
Meanwhile, rising US rig counts also remains a critical factor for the commodity. US energy companies added oil rigs for a 10th week in a row, for a total of 529, Baker Hughes data showed. Rising rigs data has the potential to pull Oil under $ 50 per barrel in coming days.
Oil prices hit near one and half year high around $ 55 per barrel before witnessing some corrective selling. The US Energy Information Administration (EIA) determined the annual average WTI crude price in 2016 was $ 43 per barrel, ending the year at $ 53 per barrel.
Although 2016’s price was down $ 5 per barrel overall from 2015, WTI ended the year at $ 16 per barrel higher than at the end of 2015. Similarly, Brent ended the year up $ 17 from the end of 2015, at $ 54 per barrel, but the 2016 annual average of $ 44 per barrel was $ 8 below the 2015 average.
Despite robust demand for petroleum products, relatively high production and inventory levels provided downward pressure on crude oil prices throughout most of 2016, the EIA said further. According to the EIA, OPEC’s recent agreements to curb production over the next six months and additional pledges by some key non-OPEC producers put upward pressure on prices at the end of 2016, as markets appear to be anticipating tighter balances than previously forecast.
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