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New York: Oil prices plummeted on Monday as markets expected that supply would surpass demand.
The Organisation of the Petroleum Exporting Countries (OPEC) decided against cutting output last December, Xinhua news agency reported.
The cartel's output accounts for around 40 percent of the global crude output. Traders bet the oil-rich cartel was less likely to cut output now.
Thanks to the US shale oil revolution, American oil production has almost doubled in the past six years. There is no sign that the US shale oil producers have started to cut production in face of the plunging prices.
The West Texas Intermediate for February delivery moved down $1.75 to settle at $31.41 a barrel on the New York Mercantile Exchange, while Brent crude for February delivery decreased $2 to close at $31.55 a barrel on the London ICE Futures Exchange. (IANS)