oil prices

Oil prices fell more than 4% on Tuesday amid output concerns in U.S and Russia.

Prices fell despite output cut agreements from the Organisation of Petroleum Exporting Countries (OPEC).

Traders attributed the fall to an increase US inventories as well as rising shale output forecasts.

In addition, residual fears regarding future demand and doubts over the OPEC output cuts enduring only added to pressure on oil prices.

OPEC member countries and other oil producers agreed this month to cut production by 1.2 million barrels per day (bpd), in a bid to push up prices.

The world’s major oil producers agreed upon the cuts in Vienna, despite opposition from U.S President Donald Trump.

OPEC’S member nations include Saudi Arabia, the leading oil producing country globally.

The organisation is comprised of 15 countries, and was found back in 1960. According to September figures, OPEC countries accounted for 44% of global oil production.

During early morning trading on Tuesday, Brent crude was down -2.53% at 58.10 and WTI crude oil down -1.45% as of 7:30AM (GMT).