The price of Brent dropped towards $61 per barrel on Wednesday as the US dollar neared its highest level since April 2006 due to strong data.
Reuters reported that Brent for February delivery dropped 36 cents to $61.33, while US crude declined 34 cents to $56.78.
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Figures from the US Commerce Department are expected to reveal a buoyant economy with third-quarter growth probably revised up to 4.3% from 3.9%.
Oil prices have declined nearly 50% since June. While output has increased, demand has slowed. Despite the drop, OPEC has decided not to cut down production.
Reuters quoted Pira Energy’s research note as stating: "The very sharp drop in crude prices that we are currently observing is not sustainable. Over time, the loss in global liquids at Brent prices below $70 a barrel would cause non-OPEC growth to grind to a halt, while global demand growth would be rejuvenated."
The US Department of Energy’s Energy Information Administration (EIA) is due to unveil the official oil inventory data later today.
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By GlobalDataData from American Petroleum Institute revealed that US crude stocks increased by 5.4 million barrels in the week ended 19 December.
