Crude oil prices have dropped 3% after analysts cut their 2016 price forecasts due to continuing oversupply and weak Chinese economy.
Brent crude futures LCOc1 slipped over 3% to a low of $30.43 per barrel, while the US crude West Texas Intermediate (WTI) CLc1 dropped to a low of $30.41 per barrel, Reuters reported.
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Increasing oversupply, weakening economy in China and stock market turmoil contributed to weighing down oil prices by around 20% since the beginning of 2016.
Strong dollar also put pressure on the oil futures making it expensive for other currency holders to buy oil.
Strong Petroleum crude oil managing director Oystein Berentsen said: "Once the crude surplus turns into a product surplus and we start running out of storage capacity, there will be even more pressure on prices and an imminent collapse."
Trade sources said that Iraq is planning to export around 3.63 million barrels per day (bpd) from its southern oil terminals during February 2016.
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By GlobalDataOPEC Secretariat calculations revealed that the price of OPEC basket of 13 crudes stood at $27.07 a barrel on Monday, compared with $28.46 the previous Friday.
Image: Brent crude futures LCOc1 slipped 3% to a low of $30.43 per barrel. Photo: courtesy of nuttakit/ FreeDigitalPhotos.net.
