It appears there isn’t immediate reprieve for oil prices in the international oil market.

Just when it was thought that there is a possible rebound, it goes crashing again.

You see, after a slump on Christmas eve, prices rebounded by 8% on Wednesday. But by Thursday morning, prices have fallen more than one percent.

The decline, trader believe, is fueled by worries over a glut in crude supply and concerns over a faltering global economy pressured prices.

As at 8 am on Thursday, Brent crude oil was down 70 cents, or 1.3%, at 53.77 dollars per barrel.

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Oil prices reached multi-year highs in early October but have fallen almost 40% since then and are now approaching their lowest levels for 18 months.

Brent is heading for losses of almost 30% this year while the US contract has dropped almost 25%.

Three months ago it looked as if the global oil market would be under-supplied through the northern hemisphere winter as US sanctions removed large volumes of Iranian crude.

But other oil exporters have more than compensated for any shortfall, filling global inventories and depressing prices.

The fuel glut has combined with faltering investor sentiment in other asset classes, producing a bear market for oil, analysts say.

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