Oil prices continue to decline on Monday with both benchmarks under $30 and raising concerns over the market recovery and the worsening global oversupply after Iran’s sanctions were lifted over the weekend.
Prices for the North American West Texas Intermediate (WTI) crude traded 2.07% lower to $28.81 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude slid 2.70% to $28.16 a barrel on the London-based ICE Futures Europe exchange.
Prices for both benchmarks fell to a fresh multi-year low after a volatile start to 2016 and worries of the market recovery.
Analysts forecast an ongoing decline in the commodity until late 2017. Iran increased its crude exports by 500,000 barrels per day after the US lifted sanctions against the Persian Gulf over the weekend.
A monthly report OPEC is scheduled to be released later in the day with members of OPEC (Organization of the Petroleum Exporting Countries) are calling for an emergency meeting to hold talks over the low oil prices.
Meanwhile, Saudi Arabia’s Oil Minister Ali al-Naimi also commented on the sliding oil prices, “I am optimistic about the future, the return of stability to the global oil markets, the improvement of prices and the cooperation among the major producing countries. Market
forces as well as the cooperation among producing nations
always lead to the restoration of stability,” al-Naimi said on Monday.