The price of Brent crude oil slumped below $91 a barrel today on lower economic growth forecasts, raising new worries on oil demand amid ample supplies.
Reuters reported that Brent crude for November was down 95 cents at $91.16, while US crude declined to $87.80 a barrel.
For the third time this year, the International Monetary Fund has cut its global economic growth forecast due to slower growth in core euro zone countries, Japan and Brazil.
The US Energy Information Administration also reduced this year’s global demand forecast by 1.24 million barrels and cut the price of the Brent crude forecast for 2015.
Commerzbank senior oil and commodities analyst in Frankfurt Carsten Fritsch was quoted by the news agency as saying: "This is a continuation of the downward trend with yet more signs of weaker demand."
An inventory report from the American Petroleum Institute (API) has revealed that US crude stocks increased by 5.1 million barrels to 360 million in the week to 3 October 2014.
A source at Libya’s National Oil Corporation said on Tuesday that the country’s oil production dropped below 900,000 barrels a day last month following a sit-in protest by local residents demanding jobs at Sirte Oil.