The price of oil, as measured by its United States benchmark, has entered bear market territory - in other words, a fall of 20% or more from its peak - in barely a month.
Benchmark U.S. crude oil fell 1.6 percent to $60.67 a barrel in NY.
Brent crude is the standard for global oil prices and it has also fallen sharply over the last five weeks.
Oil prices fell on Wednesday, extending losses from the previous session, with markets well supplied amid rising production and US sanction waivers that allow Iran's biggest customers to continue buying its crude.
Asked whether India was going to reduce crude oil imports from Iran, he did not give a direct reply but said Iranian oil was very important for India's energy security. When they meet this weekend, the producers will have to contend not only with the threat of a glut, but also the risk to demand from faltering emerging-market economies and a trade war between the USA and China.
In China, a flotilla of supertankers carrying around 9 million barrels of Iranian oil worth about $650 million is sitting outside Dalian port.More news: Alexandria Ocasio-Cortez wins election to New York’s 14th congressional district
The decline in prices over the past weeks follows a rally between August and October when crude rose ahead of the re-introduction of sanctions against Iran's oil exports on November 5.
While US sanctions have been re-imposed, eight countries have been given temporary waivers to keep the oil prices down, as US President Donald Trump says.
In the USA, crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data. In addition, having initially talked of choking off Iranian shipments to zero, the United States waiver decision is expected to limit the fall in Iran's exports.
At the same time, output from the world's top-three producers, Russian Federation the United States and Saudi Arabia, is rising.
Zanganeh claimed the Trump administration may have been able to "superficially" bring fuel prices down ahead of the US mid-term elections this week but that there's bound to be a hike in prices in the future. At the same time, the trade dispute between the United States and China is threatening growth in the world's two biggest economies. Announcements of production increases by Saudi Arabia and other countries to cover anticipated disruptions had led to a crude oil future selloff during most of October.
The steep drop comes one week after major oil companies such as Exxon and Chevron reported surging earnings based, in part, on crude prices that were hitting four-year highs. The EIA expects output to break through 12 million bpd by mid-2019, largely thanks to a surge in shale oil production. Pressure from the U.S.to lower prices probably will decrease now that the nation's midterm elections are over, Saxo Bank's Hansen said.