Oil went below $40 a barrel again this morning — maintaining the dip it suffered on Monday.
WTI crude was at $39.95 a barrel as of 9:45 a.m. GMT (5.45 a.m. ET) on Tuesday, while Brent oil was barely higher at $42.02.
A survey by Reuters suggests that output from all 13 member states of OPEC is at a record high, causing the latest dip. Prices are down from a high of just over $50 in June.
Iraqi military gains against the Islamic State, which was threatening the country’s oil supply, have also pushed down prices. And Nigeria has combated insurgencies by the Niger Delta Avengers on oil wells, ramping up its output even further.
Areas free from war have increased supply too, with the US adding 44 oil rigs in July — the highest monthly gain since early 2014.
The oversupply and drop in price follow the “bearish” stance by analysts at Morgan Stanley, who in a note last week foresaw “worrisome trends for supply, demand, refined products, the macro and positioning that may all coalesce in late summer.”
The bank predicts that prices could drop as low as $35 a barrel by the end of the year.
Here is a look at Crude Oil this morning, just under the $40 mark:
Brent oil, meanwhile, is holding up slightly better — staying above $40 — but is following crude oil’s downward trend: