Oil prices have dropped after a trade group's report indicated that US crude inventory stock was nine times higher than previously believed.  

US West Texas Intermediate (WTI) crude CLc1 dropped 19 cents to touch at $46.67, while Brent crude LCOc1 fell 47 cents to reach $48.14, reported Reuters.

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American Petroleum Institute's (API) reported indicated that crude inventory grew 9.3 million barrels in the week to 28 October, while analysts polled by Reuters had predicted stockpiles to be of one million barrels.

"We'll easily be looking at $45 WTI if the EIA report shows a build as terrifying as this."

This report was released ahead of the US Government's Energy Information Administration (EIA) inventory data. If the government data too indicates large stockpiles, then the prices of crude could further decline.

PSW Investments crude oil trader Phil Davis told the news agency: "We'll easily be looking at $45 WTI if the EIA report shows a build as terrifying as this."

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Prices began to pick up when OPEC member Saudi Arabia urged non-member producers to make production cuts. However, prices began to dip when many OPEC members showed an unwillingness to cut oil production.

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This has cast doubts on whether the group's meeting on 30 November in Vienna will be a success. Though OPEC claimed that it is making progress on the production cut plan, traders are yet to be convinced.