Oil prices have fallen due to concerns of oversupply and expectations over a rise in US crude stocks.
Brent futures for December delivery fell 20 cents to $47.34 a barrel, while the US crude slipped 37 cents to $43.61 a barrel, Reuters reported.
Commercial crude inventories in the US estimated to have increased by an average of three million barrels to 479.6 million in the week ended 23 October, a survey by the news agency revealed.
According to Goldman Sachs, stocks of distillates such as diesel and jet fuel are witnessing a decline by two million barrels, while storage utilisation for distillates in the US and Europe is increasing.
Due to reductions in capital expenditure by publicly traded companies that may result in a decline of 700,000 barrels-per-day (bpd) in production to 52.7 million bpd, non-OPEC supply is expected to slip in 2016.
Investors are watching for the outcomes of the upcoming US Federal Reserve meeting and China’s fifth plenum this week.
The Federal Reserve meeting is expected to hint about the fate of interest rates.
In China, a meeting of the Communist Party’s central committee is expected to set a 7% annual growth target in its 13th five-year plan.
Algerian Foreign Minister Ramtane Lamamra said that the country supports Venezuela’s call for a summit among heads of state from OPEC and other oil-exporting nations to lift crude prices.