Brent crude and WTI: Oil prices continue to fall as oversupply concerns grow

Jessica Morris
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Stronger appetite for petrol has helped put a floor under Brent crude prices (Source: Getty)

Oil prices fell for the second day in a row this week, as weaker demand for petrol fed into concerns that the world's oil producers will be unable to agree a freeze deal.

Stronger appetite for petrol in both North America and Asia has helped put a floor under Brent crude prices which have tumbled around 70 per cent since July 2014.

Data showed US petrol demand in January slumped for the first time in 14 months, while overall US oil demand fell one per cent that month from a year ago.

Read more: These are the "fragile five" Opec members that could collapse if oil prices don't stabilise

Brent crude, the global benchmark, fell 0.5 per cent to $37.5 per barrel this morning. US West Texas Intermediate, the US benchmark, slumped 0.8 per cent to $35.41.

This fed into fears Opec and other big producers will be unable to agree a freeze deal at a meeting in Doha due to take place in two weeks.

Read more: How the oil price rout will affect Saudi Arabia's economy

Saudi Arabia has said it will not freeze oil output at January levels without rebel Iran's participation.

Russia oil exports hit a post-Soviet era high last month, while Iran reported another jump in oil output in March.

"Only a feeble mind sees a freeze in production as good news. It is the worst news as it guarantees over-production and rising inventories," consultancy FGE said.

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