Stocks spooked as oil remains volatile

Glut of supply could push crude prices to the $35 mark, warn experts

2.45 per cent lower than the previous close.

Another factor that weighed on prices was rising crude stocks in the US. Crude inventories increased by 3.1 million barrels to 539.5 million in the week up to April 15, the industry group said, compared with analysts’ expectations of a rise of 2.4 million barrels.

The potential for more volitility in crude prices remains high due to these bearish factors amid warnings from Saudi Arabia, the world’s biggest exporter of oil, to flood markets in a push to maintain market share.

“Given the mammoth rivalry between Saudi Arabia and Iran, the glut of supply will be even higher and this could easily push the price of oil towards the $35 dollar mark if the production war continues,” Naeem Aslam, chief market analyst with AVA Trade, said.

Falling oil prices also impacted global equities earlier, but reversed losses ahead of a European Central Bank meeting today. The EuroStoxx 50 was 0.32 per cent higher at 3,122.89, after falling as low as 3,095.63 while DAX was 0.14 per cent higher at 10,364.23.