New York: Oil prices plummeted on Tuesday, snapping four days of gains and renewing a sell-off that has plunged crude futures into bear market. Brent crude, the international benchmark for oil prices, dropped $3.41, or 5.1 per cent, to $63.38 a barrel. Brent hit a fresh eight-month low on Tuesday. US West Texas Intermediate (WTI) plunged more than 6 per cent to $53.63, its lowest level going back to October 2017. The contract last traded at $54.37, down $2.83, or 5 percent by 12:02 p.m. ET.
The renewed selling in the energy complex dovetailed with a sharp pullback in the stock market. The Dow Jones Industrial Average was down about 350 points, after posting a nearly 400-point loss in the previous session. Commodity watchers have grown more concerned that supply will outstrip demand next year.
The market expects Opec, Russia and several other allied producers to launch a fresh round of output cuts in the coming weeks to prevent a price-crushing crude glut. US crude prices have now dropped as much as 30 per cent from a four-year high last month. Brent has tumbled 27 per cent from its recent high.
