Oil prices slumped $4 today, erasing earlier gains after news of a surprise jump in crude inventories in the US, the world's biggest consumer of energy.
London's Brent North Sea crude for November delivery tumbled $4.07 to $94.10 a barrel. New York's main contract, light sweet crude for November delivery, lost $3.39 to $97.25.
The US Department of Energy (DoE) said today that US crude stockpiles rose 4.3 million barrels in the week ending September 26, surprising a market which had been expecting a fall of around 1.7 million barrels.
The DoE said petrol stockpiles increased by 900,000 barrels. In earlier trade, prices had risen as the market tracked the progress of a US bailout plan for the troubled financial sector.
Oil prices had rebounded by $4 yesterday, after tumbling by 10% on Monday, with investors cautiously optimistic the US Congress will pass the bailout deal this week after the House of Representatives voted it down on Monday, sparking a global stock market rout.
