Oil prices dipped on Monday partly in response to the major plunge on the Dow Jones Industrial Average which dropped 1,100 points, hitting six and a half year lows.
Brent crude oil futures were at $66.9 per barrel in early trading on Tuesday which represents a slide of 1%. Brent crude is now around $4 lower per barrel than its peak price earlier this year.
More worryingly for the OPEC and non-OPEC group currently committed to sizeable output cuts, some of the sentiment behind the retreat in prices is due to general market conditions.
US production continues to rise in the face of the production cuts, with daily output now in excess of 10mn barrels per day. Additionally, data for January reveals there are 765 rigs drilling for oil in the US – more than double the number at the same time last year.
