Brent crude tumbled below $ 80 a barrel for the first time in nearly a month on Thursday as the stock sold off in the US and US stocks rallied unexpectedly.
The global benchmark, Brent Crude, closed 0.9% lower at $ 79.29 a barrel, the lowest since 21 September. Meanwhile, light, sweet November delivery crude, the US benchmark, fell 1.6% lower at $ 68.65 a barrel on the New York Mercantile Exchange
The US Energy Information Administration reported Wednesday that crude oil inventories rose by 6.5 million barrels to 416.4 million barrels last week. This is in line with expectations of a 1.5-million-barrel increase, according to a Wall Street Journal survey.
In early October, for the first time in four years, Brent temporarily exceeded $ 85 a barrel.
But prices have come under pressure in the past week amid turmoil on global stock markets and signs of weaker oil demand. Both the International Energy Agency and OPEC lowered their oil demand growth forecasts this week and next week, partly due to the gloomy macroeconomic outlook.
Crude oil inventories are on the rise in the US, and the reason is that US tubes are being expended for export while US production is rising, said Bjarne Schieldrop, chief commodity analyst at SEB Markets.
Stocks also saw WTI close 3% on Wednesday, while Brent closed the session 1
Nick Oxford / Reuters
Analysts at consultancy JBC Energy said on a daily note Thursday that "the sharp rise in US crude oil inventories was the fourth consecutive year, meaning that crude oil inventories rose over 22 million barrels in the past four weeks . "
Oil prices rose at the beginning of next month due to declining Iranian oil production last month before the reintroduction of sanctions against the Islamic Republic oil industry.
The IEA said last week that Iran's supply fell to a 2 1/2 level in September as buyers continued to reduce their purchases prior to 4 November. Crude oil production fell 180,000 barrels a day from a month ago, reaching 3.45 million barrels a day last month, the agency said.
Prices were also bolstered by a decision by the Organization of Petroleum Exporting Countries and its late September partner companies not to ramp up crude oil production ahead of schedule. Saudi Arabia and Russia drew up a plan for OPEC and its allies in June to gradually increase production after more than a year of production.
Among the refined products, November petrol futures declined 1.2% to $ 1,895 a gallon. Diesel futures fell 0.4% to $ 2.3017 per gallon.
-Dan Molinski contributed to this article.