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.
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.
OPEC 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.