Oil fell below $70 a barrel today for the first time since August last year after US government data showed larger than expected increases in crude and gasoline inventories and weaker product demand.
Crude oil inventories in the US rose 5.6m barrels last week, the government data showed, compared with analysts' expectations of a 1.9m barrel increase.
Gasoline inventories rose 7m barrels against analysts' forecast of a 2.9m barrel increase.
The news pushed US crude down more than $5 at one point, sliding to as low as $69.15, the cheapest price since August last year. It was trading $3.10 lower at $71.44 in late trade.
London Brent crude also fell more than $5 to $65.70, the lowest since May.
US crude has fallen from its record highs above $147 hit in July and it has lost nearly a third in value in three weeks, the steepest such decline since it began trading in 1983.
Total oil product demand in the past four weeks fell 8.9% from a year earlier.
Data from the Federal Reserve showed US industrial production posted the biggest monthly decline since 1974.
OPEC brings meeting forward
The Organisation of Petroleum Exporting Countries (OPEC) oil cartel said today its special ministerial meeting on the impact of the financial crisis on oil prices would be brought forward to 24 October from 18 November.
OPEC said last week it would hold the meeting 'to discuss the global financial crisis, the world economic situation and the impacts on the oil market.'
'The Organisation is concerned about the deteriorating economic conditions,' it said in a statement.
OPEC has cut its estimate for growth in demand for oil this year and in 2009 largely because of an 'excessive' easing of demand in the US.
For this year, the cartel cut its estimate for growth in demand to 550,000 barrels per day, giving average total demand of about 86.5 million. The cartel is to hold a special meeting on November 18 to discuss the global financial crisis and its impact on the oil market.
