Mounting US supplies sink oil prices
World oil prices sank further on Wednesday as US stockpiles surged again.
NEW YORK (AFP) - World oil prices sank further on Wednesday as US stockpiles surged again, with the New York price falling nearly $2 a barrel to its lowest level in 16 months.
In London trade Brent North Sea crude for December delivery lost $1.51 to $84.71 per barrel.
US benchmark West Texas Intermediate (WTI) for December delivery sank $1.97 to $80.52 a barrel, the lowest level since June 2012.
"Oil prices rolled over again thanks to a stronger dollar and oil inventories much higher than expected," said analyst Jasper Lawler.
"WTI... could now be headed back down to $80."
The US Department of Energy (DoE) reported Wednesday that American oil inventories surged by 7.1 million barrels in the week to October 17, more than double market expectations.
"Although this was somewhat smaller than the previous week s 8.9 million-barrel build, it was still much larger than... expected," said Forex.com analyst Fawad Razaqzada.
US stocks of distillates, including heating fuel, rose by one million barrels, confounding forecasts for a drop of 1.5 million barrels.
Reserves of gasoline meanwhile dipped 1.3 million barrels, broadly in line with expectations.
Crude futures had risen in earlier deals on Wednesday as traders eyed recent upbeat Chinese data on industrial production.
However, oversupply and lingering concerns about demand in key markets are keeping prices close to recent lows.
