Summary Oil prices extended the prior day's steep losses despite an unexpected drop in US crude stockpiles.
NEW YORK (AFP) - Oil prices on Wednesday extended the prior day s steep losses despite an unexpected drop in US crude stockpiles, amid persistent worries about ample supplies.
US benchmark West Texas Intermediate (WTI) for November fell by 51 cents, closing at $90.73 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for delivery in November also lost 51 cents at $94.16 a barrel in London, its lowest close since June 29, 2012.
For the second day in a row, the oil market started by pushing higher and then collapsed at the end of the day," said Gene McGillian at Tradition Energy.
"It looks like oil hasn t found its bottom yet," he said, following a sharp fall in WTI and Brent since mid-June.
On Tuesday oil prices plunged, with WTI dropping to a 22-month low and Brent sinking to a level last seen in late June 2012.
"Economic conditions in Europe and Asia -- specifically China -- and supplies around the world continue to weigh on the market," McGillian said.
The worries overshadowed the US Department of Energy s weekly report Wednesday that showed US reserves of commercial crude dropped by 1.4 million barrels last week, confounding analyst expectations of a rise of 900,000. A drop in supplies can indicate stronger demand in the world s largest crude consumer.
The dollar reached six-year highs against the yen and two-year peaks versus the euro. A stronger dollar makes dollar-priced oil more expensive for buyers using weaker currencies, tending to dampen demand.
