Oil tanks on China woes oversupply
More pressure on Chinese blue chips Monday contributed to major sell-offs in energy markets with oil diving 6% in value overnight to US$31.16 a barrel.
Brent crude tumbled 6.7% to US$31.29 a barrel.
The current price range reflects a 70% decline since mid-2014 when soaring production began to dramatically outstrip demand.
In addition to ongoing market volatility in China – the world’s second largest oil consumer – the potential for a lifting of sanctions against Iran has created concerns in the sector.
Additional exports from the Middle Eastern country could increase pressure on a global glut exacerbating steady U.S. output.
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