NEW YORK, Aug. 11 (UPI) -- Disclosure from OPEC that crude oil production was at its highest level since 2012 sent crude oil prices on a downward spiral in early Tuesday trading.
The Organization of Petroleum Exporting Countries said in its latest monthly market report production from its 12 members increased by a net 100,700 barrels to 31.5 million in July. Accounting for just under half of the world's total supply, the disclosure in an already-oversupplied market pushed crude prices lower.
Brent crude oil prices dropped more than 2 percent in early Tuesday trading to $49.23, moving back below the threshold price of $50 per barrel. West Texas Intermediate, the U.S. benchmark for crude oil prices, lost more than 3 percent from the previous session to $43.54 per barrel, very near its lowest point for the year.
Crude oil price trajectories Tuesday were influenced further by a Chinese decision to devalue the national currency. China has been struggling to arrest economic decline after two major crashes on the nation's stock exchange in July.
Crude oil prices have been trading consistently lower because global demand isn't taking up the surplus in supply. Declines in July were triggered in part by re-emerging concerns about the health of the Greek economy.
The Greek government said Tuesday, however, it reached a bailout deal with lenders that would secure new much-needed finances in exchange for ambitious economic reforms, which lawmakers will review next week.
For OPEC, global economic momentum for other lead economies, including labor-rich United States, should translate to demand growth moving forward.
"Given the better than expected growth in global oil demand so far this year, together with some signs of a pickup in the economies of the major consuming countries, crude oil demand in the coming months should continue to improve and, thus, gradually reduce the imbalance in oil supply-demand fundamentals," it said in its market report.
