Oil prices hit 7-month low on global supply

Oil prices hit 7-month low on global supply

LONDON: Oil prices sank to a seven-month low, as concerns over a glut in the market continued to weigh on sentiment.

Benchmark Brent LCOc1 dropped $1.29 to a low of $45.62 a barrel, its weakest since Nov. 15, two weeks before OPEC and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January.

Oil prices lost around 1 percent on Monday as concerns over a steady increase in U.S. production added to fears over a glut in the market.

Oil prices lost around 1 percent on Monday as concerns over a steady increase in U.S. production added to fears over a glut in the market. The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.

Investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products. Industry group the American Petroleum Institute is due to release its weekly report later on Tuesday, while official data from the Energy Information Administration will be released Wednesday.

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