Investing.com - Oil prices plunged on Monday, as oversupply concerns remained a factor for oil markets.
Crude oil for delivery in January on the New York Mercantile Exchange sank $1.32, or 3.16%, to trade at $40.58 a barrel during European morning hours.
U.S. crude inventories rose for the eighth consecutive week last week, remaining near levels not seen for this time of year in at least 80 years and underlining worries over a domestic supply glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery slumped $1.04, or 2.35%, to trade at $43.62 a barrel.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.04 a barrel, compared to $2.76 by close of trade on Friday.
The oil market has been on the defensive in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
OPEC will meet on December 4 to review their output strategy. Saudi Arabia and other Gulf OPEC members have recently indicated they will continue to stick to their policy of defending market share by keeping production high.
The possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, further weighed.