Oil prices have fallen to their lowest level in six months, with Brent crude, the international standard, dropping below $70 U.S. a barrel.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading at $66 U.S. per barrel, its lowest level since last September.
The selloff in crude oil has accelerated as the prospect of a global trade war rises and threatens to hurt demand.
The slump is also due to plans by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to begin unwinding output cuts starting in April.
Data showing a bigger-than-expected weekly rise in domestic U.S. crude inventories is also pressuring oil prices.
Brent and WTI crude oil are each trading at their lowest prices since Sept. 10 of last year.
Many analysts expect crude prices to move even lower over the near-term as a slowing U.S. economy hurts demand just as OPEC+ increases production, potentially flooding the global market with oil.
Data from the U.S. Energy Information Administration shows that crude oil inventories in the U.S. rose by 3.6 million barrels in the week ended Feb. 28, raising the country’s crude stockpile.
Declining crude oil prices are hurting stocks of energy producers, with shares of Cenovus Energy (CVE), Canada’s largest oil producer, down 20% on the year.
