Oil fell on Thursday, after six days of gains, as worries that violence in the Middle East would disrupt supply waned, and the focus returned to a persistent oversupply.
Brent crude was down 1.36% at $45.54 a barrel, while WTI futures lost 0.52% to trade at $42.82.
Earlier this week, oil prices were driven up by concerns that the downing of a Russian jet by Turkey could raise geopolitical tensions that could hit supplies. However, by today, those concerns faded and had done little to remove the view that global production will stay high even as stockpiles rise.
A stronger dollar also weighed on oil as it makes it more expensive for holders of other currencies.
The Organization of Petroleum Exporting Countries is determined to continue pumping oil to defend market share, alarming some of the cartel's weaker members who fear prices may drop towards $20.
Analysts meanwhile noted that stocks were building all of last year and in 2015 as well. It's starting to strain inventories and storage space is beginning to shrink.
However, while stockpiles are high and are on the rise in the United States and many European economies, in China, commercial crude oil stocks at the end of October were down 4.4% from the previous month in their biggest fall since at least 2010, the official Xinhua News Agency reported on Thursday.
In November, Brent has lost nearly 8% and is down by 20% this year, after tumbling from above $115 per barrel last year.
U.S. crude had been buoyed on Wednesday by a smaller-than-expected build in U.S. inventories and by a decline in oil rigs, signalling that drillers were awaiting higher prices before returning to the well pad. The data supported WTI futures earlier Thursday.
Credit: mql5.com
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