Brent crude dropped below $102 a barrel today amid a strong US dollar and oil demand fears in China and Europe.
Reuters reported that Brent crude for October delivery was down 87 cents at $101.91 a barrel while US crude was down 73 cents at $95.23 a barrel.
The news agency said that the price of crude is currently under pressure from a strong dollar, which increased 0.27% against a host of currencies, and the likelihood of returning supplies in the North Sea.
Manufacturing growth in the Eurozone slowed largely in August and factory activity in various nations appeared to be sluggish, while factory growth in China dropped to a three-month low in August following decreased demand in overseas and domestic markets.
Investors are worried that the possible escalation of the conflict between Russia and Ukraine may result in new sanctions, which could affect energy demand rather than supply.
Supplies remained at a good pace despite problems with the recommencing of the Buzzard oilfield in the UK and the current volatile situation in Libya.
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The worldwide oil demand has been running below supply over the last few months, following a supply glut in West African, Asian and Atlantic markets.
The move has encouraged traders to store crude with Reuters quoting Energy Aspects as saying that 75% of the 40 million barrel storage capacity of South Africa’s Saldanha Bay has been filled.