The prices of oil in the global market continued to make a downward trend of 7 percent in the previous trading session as concerns of a rising supply in which consumption is also predicted to take a halt to make a grim economic outlook.
Meanwhile, the US crude inventory resumes increase at a rate that is now surpassing the earlier expectations of market watchers and experts, forcing crude futures to hit a bottom low despite reports saying that OPEC (Organization of the Petroleum Exporting Countries) and non-members of the cartel have plans to reduce production output.
According to Reuters UK, the US crude futures CLc1 went down by 0.6 percent, or 33 cents, at $44.92 a barrel. The contract, however, rose by 1 percent on Wednesday, following 12 consecutive sessions of decline and reaching its lowest point since November of last year.
Brent crude LCOc1 settled up by 65 cents or 1 percent at $66.12 per barrel, after a session-high of $67.63 and a few slumps in the past few weeks.
As indicated in a separate report from the news agency, the US West Texas Intermediate (WTI) crude futures were down by 29 cents, or .5 percent, settling at $55.96 per barrel.
The early parts of October have seen huge price slumps of oil prices, which, by estimate, is around a quarter of their value. Reuters said that this may be the result of the unabated increase of supply of crude stocks into the market while the demand for the commodity is expected to slow down, forcing the aforementioned futures to backpedal on the pricetags.
Citing the statement from an official of Mercatus Energy Advisors, the report said that oil refineries and consumers, particularly in Asia, are having initial concerns over the slowing demand for crude products.
Supply coming from North America's end kept on surging, with the latest rate peaking at 22 percent for this year alone, or 11.6 million barrels adding to stocks by the daily.
The energy advisor reiterated that producers are having a hard time maintaining the equilibrium as there are more barrels coming in than what they can sell at the moment.
This observation was backed by the American Petroleum Institute which also said on Wednesday that the oversupply resulted in an unprecedented increase of oil inventories.
Because of this, OPEC, and its non-member allies have expressed plans to undercut their output fearing that the prices will crash down under the weight of oversupply.
