Oil prices recorded significant losses at the close of trading on February 12, 2018, wiping out all the gains made so far in the year.

Brent crude traded at US$62.50 a barrel on Monday compared with a year open price of US$66.87 a barrel, reflecting YTD loss of 6.31%.

The recent collapse could largely be attributed to a surge in US crude output, the recovery of the US Dollar and a global financial turmoil. The number of oil rigs operating in the US is reported to have risen by 26 to 791, the highest level since April 2, 2015.

Meanwhile, oil prices were trading higher on Tuesday after a report suggests that OPEC and its allies have almost cleared the supply glut. The recovery of prices on Tuesday could also be explained by recovery of global stock markets. There are concerns however that the effort from OPEC could be offset by rising output from other oil producers, particularly the US.