25-10-2018 04:30 PM

Oil prices traded lower on Thursday in the midst of sharp selloffs in worldwide stock markets.

According to Mr.Ponmudi, Market Expert & Managing Director of Enrich Financial soution - "Oil prices dropped under intense selling pressure as the sudden selloff across stock markets added worries over a likely drop in oil demand development."

The U.S. stock markets closed with a fall Wednesday evening, with the S&P 500 dropping 3.09% and Nasdaq falling 4.43%. The plungeencouraged Asian markets to tumble Thursday morning, with Japan’s Nikkei down more than 3%.

International Energy Agency director Fatih Birol said the world's major oil and gas producers are under more stress to lessen their reliance on energy revenues in the midst of advancement in fuel efficiencies and electric vehicles. Further he added - "More than at any other point in recent history, I believe there needs to be fundamental change in the development models of those countries," Birol said oil and gas revenues for these countries could potentially drop to $1,250 by 2030, a 30% drop.

"When we gaze at these countries, on standard they get more than 70% of their government revenues from oil and gas. "Those are under pressure from prices, they are under pressure from the amount of oil they Expert and under pressure from population development. We think it is very different from the past."