The price of Brent crude traded at approximately $82 a barrel, just above the recent four-year low, due to a strong US dollar.
The stength of the US dollar outweighed concerns of a drop in production in Libya.
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Reuters reported that Brent crude for December delivery declined 40 cents to $81.94 a barrel, while US crude fell 28 cents to $77.12 per barrel.
The Energy Information Administration said lower prices had less impact on drilling in the US, with production from the largest shale fields indicating no signs of slowing down.
Newedge Japan commodity sales manager Yusuke Seta was quoted by the news agency as saying, "US producers may begin to cut production next year. The market may rebound if we see confirmation of that, but as long as production keeps rising from non-OPEC countries, the market will continue to fall."
Meanwhile, oil production in Libya, which increased above 900,000 barrels per day in September, dropped back to about 500,000 bpd; an alternative government in Libya took control of the country’s largest oilfield, El Sharara.
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By GlobalDataReuters reported that while a strong US dollar continued to have an impact on oil, winter demand may ease the problem of oversupply in markets.
JP Morgan Chase & Co has cut its 2015 Brent price forecast by $33 to $82 per barrel.
Analysts from other banks have also recently cut forecasts for crude oil prices for this year and 2015 because of worldwide growth worries, a strengthening dollar and abundant supplies.
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