New York (Reuters) - Oil prices slumped to its lowest level in six years on Monday (Tuesday morning GMT), after the OPEC report showed continued oversupply of oil.
The benchmark US light sweet crude or West Texas Intermediate (WTI) for delivery in April, dropped 96 cents to 43.88 dollars a barrel on the New York Mercantile Exchange.
The European benchmark, Brent crude for April delivery fell 1.23 dollars to 53.44 dollars a barrel in London trading.
In its monthly oil market report, the Organization of Petroleum Exporting Countries (OPEC) questioned the validity of the oil price rally in February amid oversupply of nearly one million barrels per day in the market.
The increase occurred "despite the fact that global supply continues to exceed demand," OPEC said.
It follows a similar analysis last week by the International Energy Agency (IEA), which said US crude oil inventories are already approaching the level of storage capacity due to the explosion of oil production and maintenance of weight in refineries.
Oil prices have dropped about 60 percent since June because of rising US inventories, weak global economic growth and OPEC's decision to maintain production remains high despite oil prices fell, as quoted by AFP and Xinhua.
The benchmark US light sweet crude or West Texas Intermediate (WTI) for delivery in April, dropped 96 cents to 43.88 dollars a barrel on the New York Mercantile Exchange.
The European benchmark, Brent crude for April delivery fell 1.23 dollars to 53.44 dollars a barrel in London trading.
In its monthly oil market report, the Organization of Petroleum Exporting Countries (OPEC) questioned the validity of the oil price rally in February amid oversupply of nearly one million barrels per day in the market.
The increase occurred "despite the fact that global supply continues to exceed demand," OPEC said.
It follows a similar analysis last week by the International Energy Agency (IEA), which said US crude oil inventories are already approaching the level of storage capacity due to the explosion of oil production and maintenance of weight in refineries.
Oil prices have dropped about 60 percent since June because of rising US inventories, weak global economic growth and OPEC's decision to maintain production remains high despite oil prices fell, as quoted by AFP and Xinhua.
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