Global oil prices plummeted 5% on Monday, with Brent crude sliding below $83 per barrel for the first time since September 27, as Saudi Arabia and other OPEC members are said to be negotiating an increase in output.

As of 14:27 GMT, January Brent crude futures were down 4.9% to $83.33 per barrel, while January WTI futures were down 4.71% to $76.36, as per trading data.

The world's most liquid oil contract, WTI crude oil futures, which is also the US benchmark because it has the largest share of total US production, fell below $80 on Friday.

In this past week alone, it went down to more than 11% despite declining inventories and OPEC+ cuts. 

Reasons for this drop are various but according to speculators, it is likely due to concerns over geopolitical tensions and the possibility for China to close down its borders due to rising numbers of Covid cases. 

But China has technically re-opened, which means that demand should go up.

As winter is approaching, energy consumption should go up. But that also does not seem to be happening.

As the US dollar has come under some serious firepower on the downside, the price of oil is supposedly higher in dollar terms.

But when the US dollar is strong, fewer US dollars are required to buy a barrel of oil. Around 1305 GMT, a barrel of WTI for delivery in December was down 1.9 percent at $80.08.

As for the main EU contract, Brent for delivery in January went down 1.6 percent at $88.33.