Prices for front month crude have dropped more than 18% in the past week.
The markets appear to be reacting to news of continued economic uncertainty in the United States and continued gluts in gasoline supplies. Stockpiles of gasoline in the US have grown by 1.9 million barrels last week as Americans curb their driving.
“The recession is far from over,” said analyst Stephen Schork. “Perhaps the run-up in prices was a bit overstated.”
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