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MTECHTIPS:- Oil prices fall 2% to hit 1-week low amid supply glut concerns
Oil prices fell sharply to a one-week low in Europe trade on Tuesday, as investors worried that a huge oversupply in crude was coinciding with a global economic slowdown, especially in China. On the ICE Futures Exchange in London, Brent oil for April delivery slumped to an intraday low of $33.46, the weakest since January 28, before trading at $33.58 a barrel by 09:00 GMT, or 4:00AM ET, down 67 cents, or 1.94%. A day earlier, London-traded Brent futures plunged $1.75, or 4.86%, amid doubts over the likelihood of a deal between Russia and OPEC producers to cut output happening anytime soon. Brent prices are still up nearly 20%, since falling to a 12-year low of $27.10 on January 20, as speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the biggest supply gluts in decades fueled a short-covering rally. Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share. Oversupply issues will be exacerbated further as Iranian exports return to the global oil market. Elsewhere, crude oil for delivery in March on the New York Mercantile Exchange shed 68 cents, or 2.13%, to $30.95 a barrel during morning hours in London after hitting a session low of $30.80, a level not seen since January 27.
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