Oil prices are set to fall below the $40 per barrel mark not before too long, this was according to an analyst at Energy Aspects.
Oil prices have tumbled by more than 20 percent this year, which sets the bar for the commodity's worst performance for the first six months of the year since 1997. These figures put the futures in the bear market territory.
Prices kept on falling in the previous session by 2 percent due to new signs of a rising output from Nigeria and Libya. Brent Crude Futures was sold at $46.16 on Wednesday while the U.S. WTI crude was around $43.70 per barrel.
The falling in prices seems to have stemmed from investors disregarding the evidence of a robust compliance by the OPEC and non-OPEC producers with a deal to cut production to curb global over-supply.
Asian market inched higher in today’s session.
The Nikkei 225 edged higher by 0.17 percent and the Kospi rose 0.3 percent.
Australia’s S&P/ASX 200 climbed in the session by 0.8 percent, with energy and material stocks indicating recovery after selling off in the previous session.In other countries, most indexes from China were also bullish.The Hang Seng index closed higher by 0.56 percent. And in the Mainland, the Shanghai Composite was also able to climb by 0.76 percent.