Oil prices have fallen for the sixth consecutive day following Iran’s decision to increase production.
Traders also expressed concerns about a potential hike in global supplies in the wake of growing US crude output.
Brent futures dropped 44 cents or 0.7% to trade at $64.37 a barrel, while US West Texas Intermediate (WTI) crude slipped 62 cents, or 1%, to touch $60.53 a barrel, according to Reuters.
The fall in oil prices is reflective of a declining trend amid widespread instability across global financial markets caused by massive sell-offs by investors.
The volatility in the market was triggered by fears of inflation after data revealed higher yields of government bonds.
Last month, Brent crude prices increased to more than $70 a barrel, and since then they witnessed a drop of over 9%.
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Swiss Bank Julius Baer commodities research analyst Carsten Menke was quoted by the news agency as saying: “Bets on further rising oil and metals prices, for example by hedge funds, have climbed to excessively bullish levels.
“We see oil prices dropping towards and below $60 per barrel.”
OPEC member Iran revealed plans to ramp-up production by at least 700,000bpd within the next four years.
OPEC and other producers have been engaged in voluntary output cuts since January last year to bring stability to the markets.
However, soaring US production continues to challenge OPEC’s efforts to stabilise prices.
Earlier this week, the US Energy Information Administration (EIA) stated that crude production breached the ten million barrels per day (bpd) level.