Crude oil prices fell to new lows on Wednesday below 2004 levels, losing back gains made earlier this week due to rising conflict between Saudi Arabia and Iran.
Brent crude oil prices slipped around 2 percent to as low as $35.59 per barrel at 8:10 a.m. GMT Wednesday - a figure lower than December's $35.98 per barrel, according to official figures.
The losses came ahead of the U.S. government's Wednesday data, which is expected to show a rise in stockpiles that point to a further glut in the market.
The prices reached almost $39 per barrel on Monday after Saudi Arabia executed a prominent Shi'ite cleric due to terrorism charges. As a result, this action faced outrage from Iranian officials and caused the two countries to break their diplomatic ties after two Saudi missions in Iran were attacked.
West Texas Intermediate oil price also was down by nearly 1.2 percent to as low as $35.44 percent Wednesday.
The possibility of cutting oil production to maintain prices diminished following the rift between the two major OPEC countries.
Iranian officials have repeatedly announced their will to increase oil exports as sanctions on the country are about to be removed. Consequently, more crude will be added to the already over-supplied market.
Iran also urges other OPEC members, mainly Saudi Arabia, to reduce production in order to lift prices.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr