Before the Christmas holiday break, oil prices fall due to the concerns of oversupply.
Oil prices fall as there are concerns of global oversupply due to the Christmas holidays. According to sources, the International benchmark Brent crude futures decreased by 0.5% or 27 cents. However, it reached at $53.55 a barrel. In addition, it hit $52.79 per barrel on Friday.
Rising oil supplies and an abating worldwide economy have put unrefined petroleum under strain, with the two benchmarks down in excess of 35 percent from their ongoing crests toward the beginning of October.
Oil generation has been at or close record highs in significant makers the United States, Russia and Saudi Arabia.
To ease supply stresses, the Organization of Petroleum Exporting Countries (OPEC) and its partners including Russia concurred not long ago to cut oil generation by 1.2 million barrels per day (bpd).
The United Arab Emirate’s Energy Minister Suhail al-Mazrouei said on Sunday that The cuts will occur from January. Should they not be sufficient to adjust the market, OPEC and its partners will hold an exceptional meeting.