Mubasher: Oil prices and global stock markets continued their decline on Tuesday amid the US government's forecasts of weak demand and growing concerns about global economic slowdown.

Brent dropped 7.8% or $2.56 to $30.32 a barrel. Meanwhile, crude fell 1.6% or $1.75 to $27.94.

Ahmed Hassan Karam, technical analyst, told Mubasher that crude oil prices hit their lowest in 12 and half months after the U.S. Energy Information Administration (EIA) lowered its demand forecasts for the next two years and the US government projected weak production.

EIA expected oil production to decline to 8.46 million barrels a day in 2017, and amended 2016 output to 40,000 barrels a day compared with the previous report.