The price of Brent crude oil dropped towards $85 a barrel today amid a strong US dollar and abundant oil supplies.
Brent for December declined 90 cents to $85.34 a barrel and US crude was down 70 cents at $80.42 per barrel, Reuters reported.
The 3.5% increase in the US economy for the third quarter of this year pushed the US dollar to a three-week high yesterday.
Other major economies outside the US unveiled signs of slowing economic growth, indicating that there could be a slow demand for oil.
The Bank of Japan expanded its stimulus spending, increasing Japanese equities, but this has raised concerns on the economic situation of the oil importer.
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The Organization of the Petroleum Exporting Countries (OPEC) did not give any hints as to whether it will cut production targets at its meeting on 27 November.
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By GlobalDataOPEC secretary general Abdullah al-Badri said on Wednesday that the group’s output was unlikely to change in 2015.
Austrian consultancy JBC Energy said in a note that OPEC crude output probably increased by 130,000 barrels a day month-on-month in October, with the single biggest increase from Libya.
Libya and Iraq have increased their supply in October, despite ongoing conflicts and unstable political situations.