Oil prices dropped again on Monday in response to weak economic data from China and record-high production figures from Russia, reported Reuters.
The global benchmark Brent crude futures traded down 85 cents at $48.71 per barrel, as of 12:20 GMT, a drop of 1.6%. Meanwhile, US futures traded at $45.84 per barrel, a drop of 75 cents, or 1.6% on Friday’s close.
According to Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt, record-high production in Russia, weak China economic data and high production from OPEC are combining to drive prices lower.
On Monday, Russia reported that its October oil production had reached 10.78 million barrels per day, a record for the post-Soviet era.
Meanwhile, a survey showed China’s factory activity dropping for the eighth straight month in October, suggesting sluggish economic performance and a reduced demand for oil in the Asian giant.
In a Reuters survey last week, sector analysts predicted that oil prices would remain low in 2016, with OPEC likely to stick to its stance of record-high production when it meets on December 4th.