Oil Falls Most Since 2015 on Fears of Oversupply

from The Wall Street Journal,

U.S. oil prices fall for a record 12th consecutive day

U.S. oil prices sank deeper into a bear market Tuesday, posting their steepest fall in over three years and a record 12 consecutive days of declines, as fears of oversupply and weakening demand gripped the market. West Texas Intermediate for December delivery settled 7.1% lower at $55.69 a barrel on the New York Mercantile Exchange, its sharpest one-day fall since September 2015. Brent crude, the global benchmark, was down 6.6% at $65.47, entering a bear market—defined as a 20% drop from a recent peak. Oil’s rapid decline is now fueling worries about weakness in the broader economy. Investors are now questioning whether crude’s plunge could spill over into other markets. The last time oil prices posted such a steep one-day slide, three years ago, crude was in the midst of a rout that eventually dragged down equity prices.

Output from OPEC members climbed by 127,000 barrels a day in October. Russia’s production rose 50,000 barrels a day, the oil cartel said in its monthly report. Meanwhile, Iran’s production fell by 156,000 barrels a day. OPEC also lowered its forecasts Tuesday on demand growth for this year and next, citing lower-than-expected demand growth in Asia and the Middle East, along with the uncertain outlook for global economic development.

On Monday, a tweet from President Trump added to the bearish momentum in oil prices.

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