2/9/2016, 7:39 PM (Source: TeleTrader)
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Oil prices nosedive again

Oil prices have sharply fallen again on Tuesday, on the heels of the International Energy Agency report that global surplus of the black gold was higher than previously thought.

The U.S. light sweet crude traded 5.91% cheaper at $27.98 a barrel, at 7:20 p.m. CET. The price of the international benchmark Brent hammered down 8.08% at $30.43 a barrel, also at 7:20 p.m. CET.

The Organization of the Petroleum Exporting Countries reported the OPEC daily basket price of $29.00 a barrel for February 8, down from $29.30 a barrel on the previous trading day.

Adding gloom to already murky prospects for recovery in the oil markets is the news from Kuwait, that the country plans to increase production in the third quarter of 2016. The State of Kuwait plans a daily output of 3.150 million barrels by the end of September, according to Nabil Bouresli, the managing director for International Marketing at Kuwait Petroleum Corporation (KPC).

The Persian Gulf country is currently producing about 3 million barrels per day. Additional 150 thousand barrels per day in the third quarter would prompt the KPC to "search for new contacts and clients for marketing," said the report from the state news agency.

Kuwait Oil Company (KOC) has originally announced the plans on January 2. The country argues that in order to meet the its development requirements, the goal of KOC is to achieve a daily production of 3.650 million barrels per day in 2020.

Breaking the News / ZR