US benchmark West Texas Intermediate (WTI) dipped under $50 a barrel today, as speculation that increasing Middle Eastern shipments will worsen global oversupplies.
WTI fell as low as $49.92 before closing slightly up, at $50.13 a barrel, the lowest prices WTI has been trading at since the beginning of April, showing that sales continue to weaken.
Oil prices have been declining, down 60 per cent over the year, but rallied briefly over the second quarter.
As last week’s nuclear deal with Iran means sanctions will be lifted, investors are concerned that Iran increasing its oil output will prolong a surplus.
Global benchmark Brent crude has also been trading lower, recently falling below $60 a barrel.