The benchmark US oil price sank to a five-month low Tuesday as traders anticipated a key report will show US supplies are continuing to pile up.
A customer pumps gas into his car at a Chevron gas station on July 22, 2013 in San Francisco, California
New York's main contract West Texas Intermediate for delivery in December sank $1.25 to close at $93.37 a barrel, its lowest level since early June.
In London trade, Brent North Sea crude for December fell 90 cents from Monday's close to settle at $105.33 a barrel.
Analyst Fawad Razaqzada, at trading firm GFT, said the market was hit by "ongoing concerns over rising US crude inventories and (the) weaker global demand outlook."
"Underscoring the demand worries, the European Commission today cut its 2014 forecast for economic growth in the eurozone and raised its estimate for unemployment," he added.
The market was looking ahead to Wednesday's weekly report on US petroleum supplies from the US Department of Energy (DoE), expecting a seventh straight week of rising crude stockpiles.
"The market is waiting for the US stocks tomorrow and with the ongoing build there's no reason to think that it will change this time," said Robert Yawger of Mizuho Securities.
The DoE is expected to report US crude supplies increased by 1.9 million barrels in the week ending November 1, according to analysts polled by Dow Jones Newswires.
Crude inventories in the United States have climbed for the past six weeks, raising concerns about oversupply in the world's largest economy and top crude consumer.
Libyan oil production levels also remain in focus, analysts said.
Light Libyan crude is used by refiners in Europe and the sharp cuts to production forced by several months of protests has driven up prices for alternatives like Brent.
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