Crude Oil prices slipped sharply amid rising production and prevailing concerns about the state of the global economy. Front-month Brent futures prices have fallen over USD 17 per barrel, or 20% over the last five weeks while WTI futures prices have fallen for a record 11 consecutive day.
US crude futures jumped 7% the previous day, suffering their biggest one-day loss in more than three years. Brent crude was down 0.2% at USD 65.33 per barrel after falling 6.8% on Tuesday and set an 8-month low of USD 64.61. Brent crude had risen to a 4-year high of USD 86.74 early in October as the market braced for U.S sanctions on Iran, but prices have dropped nearly 25% since then.
OPEC was talking about increasing production to offset the impact of sanctions on Iran. They are also openly discussing the need for output cuts to prevent a build-up in stocks.