Global oil benchmarks lose nearly 35% from 4-year highs

The two global oil benchmarks, Brent in Europe and West Texas Intermediate (WTI) in the US, extended losses due to fears of a potential glut of crude supplies as well as slowing global growth.

On December 18, WTI futures for January delivery slumped by $3.64 to $46.24/bbl on the New York Mercantile Exchange, touching the lowest level since August 2017. Plus, Brent crude futures plunged by $3.35 to settle at $56.26/bbl on ICE Futures Europe, marking the lowest finish since October 2017.

Data from ChemOrbis Price Wizard shows that both global benchmarks plummeted by around 35% since grazing 4-year highs in October.



The most recent fall in the energy complex stemmed from the rising doubts about signs of increased crude production in the US and Russia. Oil prices were also weighed down by the ongoing concerns on the economic growth, driven by the trade dispute between the US and China.

Moreover, the latest inventory data from the American Petroleum Institute (API) reported that crude supplies in the US rose by 3.5 million barrels last week despite earlier expectations for a decrease of 2.4 million barrels.