Thursday, 20 December 2018 19:54 WIB |
Oil prices fell more than 4 percent on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets.
Equities dropped worldwide after the U.S. Federal Reserve raised rates and maintained most of its guidance for additional hikes over the next two years, dashing investor hopes for a more dovish policy outlook.
U.S. light crude oil fell by $2.35 a barrel, or 4.9 percent, to a low of $45.82, before recovering some ground to around $46.60 by 12:00 GMT.
North Sea Brent dropped by $2.60, or 4.5 percent, to $54.64 a barrel, its lowest since September 2017, and last traded around $55.44, down $1.80.
Both major oil futures contracts rallied sharply on Wednesday but are now at or close to their lowest levels for over 15 months, more than 30 percent below multi-year highs reached at the beginning of October.
The Organization of the Petroleum Exporting Countries and other oil producers including Russia agreed this month to curb output by 1.2 million barrels per day (bpd) in an attempt to drain tanks and boost prices.
But the cuts will not happen until next month, and production has been at or near record highs in the United States, Russia and Saudi Arabia.