Crude oil prices continued to tank Tuesday morning as traders geared up for a crucial Federal Reserve meeting that may signal interest rate hikes will start this summer.
Prices have plunged in the past six months, with the epic collapse brought on by a stronger dollar, burgeoning inventories and an unwillingness from major producers to trim output.
Meanwhile, sanctions may be lifted on Iranian oil if Tehran and the West can reach a deal on the Iran nuclear program, bringing even more oil into the market.
Crude oil for April was down $1.11 to $42.75 a barrel, touching its lowest since 2009. Crude oil was above $100 just last summer.
The prospect for increased global energy demand remains weak, given the problems facing Europe and Asia.
The Bank of Japan kept its massive stimulus unchanged on Tuesday and cautioned that inflation may slow to about zero percent.
The material has been provided by InstaForex Company – www.instaforex.com