NEW YORK (Rahnuma): Oil prices plunged to a new low on Friday morning, as the market was overwhelmed by persistent fears over supply gluts.
Oil prices slumped 3.43 U.S. dollars, or 6.28 percent, to 51.2 dollars at 11:45 a.m. ET (1645 GMT), marking the lowest level in more than a year and sinking the crude into a entrenched bear market for nearly two months.
Persistent concerns about oversupply has further roiled investors sentiment, as Saudi Arabia said Thursday that its oil output in November would surpass October’s production of 10.6 million barrels per day, according to Energy Minister Khalid al Falih.
The latest weekly report of U.S. Energy Information Administration also worsened the current situation, as U.S. crude stockpiles gained a fresh round of increase of 4.9 million barrels last week, extending its gaining streak to a ninth straight week.