Oil is getting no respect whatsoever at this stage and we've totally lost control of the narrative
As on writing U.S. WTI crude settled down $3.84, or 7.2%, at $46.72 per barrel, after plumbing an August 2017 low of $46.12 earlier.
U.K. Brent, the global oil benchmark, was down $3.02, or 6%, at $56.53 per barrel. The session low was $56.87, a bottom since Oct 2017.
U.S. West Texas Intermediate oil settled down 7%, the third time in four weeks that the market has fallen as much. WTI has lost 40% from four-year highs of $76.90 per barrel struck in early October, a phenomenal $30 drop in 10 weeks, as worries about a potential global recession pile on top of fears of a glut in crude supply.
Analyst believe the EIA will report that U.S. crude stockpiles fell for a third-straight week last week, with the latest deficit being around 2.5 million barrels. But that positive projection was no help to Tuesday's market.
Also weighing on the market was a monthly report by the EIA that said oil production from the seven major U.S. shale basins was expected to surpass 8 million barrels bpd by the end of the year. The United States is already the world's largest crude producer with 11.7 million bpd.
Saudi Arabia's own crude exports in October rose to 7.7 million barrels per day from 7.433 million bpd in September, official data showed on Tuesday.
The sheer plunge has some traders talking about WTI possibly testing $40 support, the market's bedrock, before trading closes for 2018.
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