US crude futures plunge below $30/bbl

The fourth consecutive drop comes amid high inventories, declining demand, OPEC speculation and volatile global stock markets. (Blend Images/REX Shutterstock)

HOUSTON (ICIS)–NYMEX WTI crude futures for March delivery finished down for the fourth consecutive session, settling at $27.94/bbl, down $1.75, on Tuesday, on expectations that the oil glut will continue and demand will decline.

In its monthly oil market report, the European based International Energy Agency (IEA) issued a forecast for declining global oil demand growth during 2016 and supply exceeding demand as OPEC producers Iran, Iraq and Saudi Arabia compete for market share.

Speculation of a possible agreement between OPEC and non-OPEC producers to trim output failed to materialize.

The market also responded to expectations that the weekly supply statistics from the Energy Information Administration (EIA) will reveal crude oil and gasoline inventories hitting record highs.

Global stock markets fell, adding to the negative outlook. A weaker dollar, which makes dollar-denominated commodities cheaper, failed to provide underlying support.

ICE Brent led the sell-off, with the April contract hitting an intra-day low of $30.28/bbl before settling just off the bottom of the rage at $30.32/bbl, down $2.56.

West Texas Intermediate (WTI), the US benchmark, established an intra-day low of $27.74/bbl, down $1.95, before attempting to rebound.

(INSET PHOTO: Mint Images/REX Shutterstock)