Oil prices plunged on Tuesday, dropping to its lowest level for the year, as the Organization of the Petroleum Exporting Countries (OPEC) once again revised its projection for oil demand in 2019 downwards.
U.S. crude has been mired into a bear market due to constant pullback in oil prices over the last six weeks. In its weekly report issued Tuesday, OPEC trimmed its forecast for 2019 oil demand for the fourth straight month.
The oil cartel projected global demand for crude will increase by 1.29 million barrels per day (bpd) in 2019, down 70,000 bpd from its forecast last month.
OPEC also said that oil productions from non-OPEC nations will increase by 2.23 million bpd next year, up 120,000 bpd from its last forecast, adding to the ongoing downward pressure on oil prices.
With signs of oversupply, OPEC and its allies have been considering output cut and will possibly announce a fresh round of output reduction next month.
The West Texas Intermediate for December delivery dropped 4.24 U.S. dollars to settle at 59.69 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery was down 4.65 dollars to close at 65.47 dollars a barrel on the London ICE Futures Exchange.