FXStreet (Mumbai) - Oil fell around 4 percent today weighed by rising glut concerns as well as weak global economic outlook. Oil recived a further blow as hopes for a deal between OPEC and Russia on output cuts dimmed. Weak economic data from China, Europe and the United States together with U.S. forecast for mild weather re-established that oil demand will likely stay low for some more time to come. Brent crude oil dropped 3.1 per cent at $33.19 while WTI fell below the $31 threshold. David Donabedian, chief investment officer at Atlantic Trust Private Wealth Management fears that low oil prices will spark concern among investors that this current slump and China’s economic slowdown indicates global recession. The impact of oil price decline is already visible in the turmoil in financial markets. equity markets have been hard hit this year given investors are worried that weak economic growth will reduce consumption demand for oil from the major energy consumers. Stocks were noted to have fallen today across markets in the wake of oil price slump . Stocks in Europe and Asia declined. Energy companies were the worst hit and were followed closely by the major banks who also saw a fall in their share value. Oil major BP reported an annual loss of $6.5 billion in 2015 which is its worst in 20 years. Its revenue report caused its shared to drop around 9 per cent. Japan’s Nikkei Stock Average closed down 0.6%, while the commodity-heavy S&P ASX 200 fell 1% . The pan-European STOXX 600 fell 1.4 percent. According to Mr. Macklow-Smith, head of European equities strategy at J.P. Morgan Asset Management said via Wall Street Journal that stock markets will continue to move in tune with the oil price “until clearer direction emerges on the underlying health of the economy” No possibility of a deal on production cut Russian Energy Ministry said yesterday that he has held a discussion with Venezuela's oil minister on a possibility of dialogue between OPEC and non-OPEC countries on production cut. Goldman Sachs feels it is "highly unlikely" that OPEC would cooperated with with Russia to reach an agreement on production cut. Andy Sommer, senior energy analyst at Axpo Trading in Dietikon, Switzerland said via Reuters "It's hard to see a successful agreement between OPEC and Russia to cut production and people are starting to see that”. He also warned that there exists strong possibility that oil would once again fall below $30 per barrel in February. OPEC is completely aware that any such deal would in prove beneficial to its rivals such as Russia and also the US shale producers and thus hurt its market share. OPEC will therefore ever agree to any such proposition. Didier Houssin, president of French Institute for Petroleum and New Energies also pointed out "There is no way U.S. producers will respect any OPEC – Russia deal meanwhile, they will be the first to benefit from any price recovery by ramping up production.” Oil price woes continue as glut rises. Stockpiles have increased significantly indicating that storage is close close to capacity. , a Reuters survey showed U.S. commercial crude oil inventories increased by 4.7 million barrels last week to a new record of 499.6 million barrels. On the other hand demand is fast dropping. Mild weather has hurt the demand for heating oil in the US and other European countries. Also, given the weak economic growth demand from the leading energy consuming countries have fallen. With storage full the oil needs to be sold and this will go on to further depress prices. For more information, read our latest forex news.