Oil prices at five-month low amid fears of global glut

May 05, 2017, 7:24 AM EDT
(Source: Anthony/flickr)
(Source: Anthony/flickr)

The oil price registered a plunge of two percent on Thursday, hitting its lowest mark in the last five months as signs of a global glut returned to haunt the investor sentiment. Analysts attribute the slump to apprehensions that oil producing nations would fail to stem excess supply when they meet later in May.

Oil prices shot up earlier this year after OPEC struck a landmark deal to cut oil output in November, notes the BBC. The market, however, remains uncertain whether the countries would continue those cuts, which has hurt global energy and commodity stocks.

A sluggish demand in China and rising oil production in the U.S. have also contributed to the weakening of crude prices, writes The Guardian.