The price of Brent crude hit a four-year low today, dropping by more than $1 to $83 a barrel.
Reuters reported that Brent crude for November delivery had declined to $82.72 a barrel and US crude dropped to $80.77 a barrel.
The worldwide benchmark Brent has lost more than 28% since June 2014 due to ample supply and weak demand.
Even as the oil price declined further this month, the Organization of the Petroleum Exporting Countries (OPEC) is unwilling to cut production because it fears losing marketshare to competitors such as US and Russia.
The decline to near five-year lows in China’s consumer inflation and the drop in US producer prices for the first time in more than a year only fuelled the global economic concerns further.
The International Energy Agency also cut its worldwide oil demand growth forecast for 2015.
Venezuela has called for an urgent meeting of OPEC ahead of the scheduled meeting on 27 November in Vienna, Austria.
The group is yet to respond to the Venezuela’s request. Several OPEC sources say that the urgent meeting may not called.
Reports of ample supplies in the US had pushed down the prices. The data from the American Petroleum Institute reveals that the country’s crude inventories increased by 10.2 million barrels to 370.7 million barrels.
Traders are awaiting the weekly supply report from the US, which is scheduled to be revealed later today.