The price of oil was heading down toward USD 92 a barrel today, near six-month lows, after US crude stockpiles rose for a tenth consecutive week.
By early afternoon in Europe, benchmark US crude for January delivery was down 16 cents at USD 92.14 a barrel in electronic trading on the New York Mercantile Exchange, having dropped USD 1.38 yesterday. Floor trading on the Nymex was closed Thursday for the Thanksgiving holiday, resulting in low trading volumes.
Oil has declined from about USD 110 in September due to reduced tensions in the oil-rich Middle East but above all to muted demand and high supplies.
The Energy Department reported that crude supplies increased by 3 million barrels, or 0.8 per cent, in the week ended November 22.
The nation's supply of crude oil is now 391.4 million barrels, which is 4.6 per cent above year-ago levels and "well above the upper limit of the average range for this time of year," the report said.
"Growing US oil production played its part in this, exceeding 8 million barrels per day for the first time since January 1989," said analysts at Commerzbank in Frankfurt in a note to clients.
"US crude oil stocks have reached their highest level for a November since records began in the early 1980s.
