Amid rising concerns of the infection rate in the U.S. and Europe, coupled with a disappointment from the U.S. relief coronavirus package, oil prices dropped nearly 4%.
West Texas Intermediate (WTI) Crude plunged $1.57 per barrel or 3.97% to $38.00 a barrel. International benchmark Brent Crude fell $1.28 per barrel or 3.11% to $39.92 a barrel.
Fear of oversupply struck the oil market amid concerns of lower demand due to the prolonged coronavirus outbreak and the resurgence in the U.S. and Europe that reached a new high in daily cases.
Meanwhile, OPEC+ is expected to increase output by 2 million bpd in January after the group agreed to a production cut by a record amount earlier this year.