The price of Brent crude fell below $98 a barrel on Thursday due to concerns of excess supplies and weak worldwide demand amid geopolitical tensions in the Middle East.

Brent crude for October delivery dropped 35 cents to $97.69 a barrel while US crude was down 19 cents to settle at $91.48, Reuters reported.

"Brent crude for October delivery dropped 35 cents to $97.69 a barrel while US crude was down 19 cents to settle at $91.48."

The prices of oil on both sides of the Atlantic are down around 2% to 3% this week due to high supplies worldwide while the demand has been weak.

The Organisation of the Petroleum Exporting Countries (OPEC) has cut its forecast for demand for OPEC crude this year and next year, which points out there could be a surplus of over one million barrels per day in 2015 if production remains at the current levels.

Data from the US Energy Information Administration revealed an increase in some of the country’s oil product inventories.

Stocks of gasoline and distillates increased by 2.4 million and 4.1 million barrels respectively in the week to 5 September.

The stocks of crude oil in the US declined by 972,000 barrels last week, which is lower than analysts’ expectations of a drop by 1.1 million barrels.

Investors are monitoring for any possiblities of further sanctions against Russia over the Ukraine crisis.

The European Union is planning to implement new sanctions on Russia over the crisis and may restrict big players in the energy sector, such as Exxon Mobil and BP, from operating in Russia.

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