Oil prices plummet to lowest level in 7 months

By Ovunc Kutlu

NEW YORK (AA) - Crude oil prices plummeted to their lowest level in seven months on Tuesday as rising global oversupply continues to worry investors.

International benchmark Brent crude fell 3.1 percent to as low as $45.45 per barrel -- its lowest level since Nov. 15.

American benchmark West Texas Intermediate lost 2.8 percent to reach as low as $42.95 a barrel -- its lowest level since Nov. 14.

Libya's oil production climbed to its highest level in four years, which added to the glut of supply in the global crude market, according to experts.

The country's oil output reached 730,000 barrels per day (bpd) in May, according to OPEC's Monthly Oil Market report in June. Libya's oil production averaged 390,000 bpd in 2016, the report shows.

OPEC agreeing to extend its production cut agreement with Russia through March 2018 does not seem to have rid the market of oversupply, while U.S. crude oil production continues to rise, according to experts.

U.S. oil output recently reached 9.33 million bpd, up 10 percent from 8.47 million bpd last October, according to Energy Information Administration (EIA) data.