Oil’s slump could get much worse amid oversupply concerns

Oil prices have plunged as much as eight per cent on growing concerns about a global economic slowdown and rising trade tensions between the US and China.

The ASX is set to open lower on Monday thanks to plunging oil prices and a weaker metals market. Source: AAP

Investors are also on alert for a likely rise in US interest rates, despite concerns about the US recession within 18 months.

OPEC and Russia appeared to come to the rescue on December 7 with a deal to slash oil production by 1.2 million barrels a day starting in January.

Yet doubts are growing about whether the agreement between OPEC and its allies goes far enough to mop up excess supplies.

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