The price of Brent crude oil dropped below $66 a barrel today amid signs of ample supply and an increase in US oil stocks.
Reuters reported that Brent futures for January declined to a low of $65.68 a barrel, while US crude futures plummeted by around $1 to $62.82 a barrel.
Data from the American Petroleum Institute (API) has revealed that US crude oil inventories increased by 4.4 million barrels last week to 377.4 million barrels.
The API said US gasoline and distillate stocks have also increased.
Meanwhile, the US Energy Information Administration has cut its worldwide oil demand growth estimate for 2015 by 240,000 barrels per day (bpd) to 880,000 bpd.
The agency’s forecast oil demand growth for this year will be around 960,000 bpd.
OPEC member’s have mixed opinions as to how the group should, if at all, react to the worldwide oversupply of oil and declining oil prices.
Algeria Energy Minister Youcef Yousfi said the cartel may still hold an emergency meeting before its next planned meeting in June next year.
Saudi Arabia did not agree to production cuts at OPEC’s meeting in November and the country has taken steps to increase its market share.