U.S. oil prices are plummeting as a surge in supply is rocking the market, according to multiple reports.

Market Watch says:

Oil futures tumbled anew on Tuesday, with a more than 5% loss in U.S. prices putting them on track to finish at a 15-month low, as concerns over a potential global supply glut rattled the market.

“Oil is under pressure again as it was reported that Russia are increasing their output to 11.42 million barrels per day this month, and that would be a record, if it turns out to be true,” said David Madden, market analyst at CMB Markets UK.

“Major oil producers can talk about coordinated production cuts all they want, but at the end of the day they usually pursue their own interests,” he said. Members of the Organization of the Petroleum Exporting Countries and some nonmember allies agreed earlier this month to cut production by 1.2 million barrels a day, but the change doesn’t go into effect until the start of the new year.

What’s more, the surge in oil supply has investors hinting at an economic slowdown.

CNBC reports:

Investor confidence is deteriorating, with more fund managers expecting global growth to weaken over the next 12 months, the worst outlook in a decade, Bank of America Merrill Lynch’s December investor survey showed.

“There was a flood of supply-side news yesterday which, in combination with the demand destruction that the stock market slide implied, got us below $50 (a barrel for U.S. crude), and that gave us a strong sell signal,” said Bob Yawger, director of futures with Mizuho in New York.

World stock markets inched higher as investors focused on the next move for the U.S. Federal Reserve, which kicked off a two-day monetary policy meeting on Tuesday. Equity markets have had steep declines over the last two months, with several stock sectors having reached bear-market territory.

Also, due to China being the world’s leading energy importer, any disruption in the oil market could send economic shockwaves around the planet.

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