Oil Prices Buckle Under Oversupply Concerns

Oil Prices Buckle Under Oversupply ConcernsOil Prices Buckle Under Oversupply Concerns

Oil prices fell on Tuesday, erasing gains linked to security fears after the Paris attacks, as investor focused again on the global oversupply in crude and petroleum products that is showing no signs of abating. Analysts said that despite the deadly Paris attacks and French retaliation against Islamic State militants in Syria, prices would remain low for the rest of the year and into 2016 as oil markets stay oversupplied, Reuters reported.

Production in 2015 will outpace demand by 700,000 to 2.5 million barrels per day, according to estimates.

“Unless the geopolitical tensions, which have obviously risen since Friday, are going to be manifested in physical supply destruction in the Middle East, I think sentiment should remain more bearish than bullish,” PVM Oil Associates analyst Tamas Varga said.