Oil prices drifted lower at the mid-week trading session in London.
The plunge in crude oil prices is largely due to a surge in U.S. crude oil stockpiles and the travel restrictions put in place to limit a new mutant strain of the COVID-19 virus, putting pressure on already weak fuel demand.
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Brent oil futures were down by 1.06% to $49.30 thereby dropping below the $50 mark. West Texas Intermediate futures lost over 1.5% to trade at $46.23.
What to expect: The oil cartel is expected to ensure that its crude oil production capacity meets the prevailing energy demand. However, the present situation highlights oil bears having a grip on the black liquid hydrocarbon market, at least for the near term until the COVID-19 caseloads get subdued.
