Brent crude oil dipped below $91 a barrel today to its lowest level since June 2012 as lower economic growth forecasts prompted concerns about global oil demand at a time of abundant supply.
The International Monetary Fund yesterday cut its global economic growth forecasts for the third time this year.
It warned of weaker growth in core euro zone countries, Japan and major emerging markets, such as Brazil.
The US Energy Information Administration also cut its global demand forecast for 2014 by 1.24 million barrels and trimmed its Brent crude price forecast for 2015.
The price of Brent for November was down 85 cents at $91.26 this afternoon, after hitting $90.76 earlier in the session, its lowest since June 2012. US crude fell 85 cents to $88 a barrel.
US crude stocks climbed by 5.1 million barrels to 360 million in the week to October 3, according to an inventory report from industry group the American Petroleum Institute (API) yesterday.
This was much larger than the build of 1.5 million barrels expected by analysts polled by Reuters.
The Organisation of the Petroleum Exporting Countries is due to meet in Vienna on November 27, and analysts expect the group to significantly cut its output target from 30 million barrels per day (bpd).
Strong supply from Iraq and Libya helped to drive prices down from a high above $115 in June, but a shock remains possible in either country.
Momentum has been building for greater international action against Islamic State militants in Syria and Iraq, as the radical group came close to taking a town on Syria's border with Turkey.
