Tension puts oil price benchmark into reverse

The price of oil plummeted nearly 4 percent as fears of a weakening demand overshadowed the agreement of some of the world’s largest producers to continue limiting their production.

Brent crude, the global oil reference price, traded at $ 62.60 a barrel (down 3.8%) in New York last night, even after the Opec cartel and others like Russia agreed to extend delivery cuts. Iran, an Opec member, was represented above by its oil minister Bijan Namdar Zangeneh.

The “Opec-plus” group announced it would continue the curbs, which had withdrawn 1.2 million barrels a day from the market, by March next year.

However, there are concerns about the impact of trade tensions. Although the United States and China have agreed to resume trade talks, weak economic data has appalled traders, while the supply of US shale oil continued to grow.