- POSTED: 10 Jan 2014 06:03
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ew York oil prices hit an eight-month low on Thursday on the back of high US crude and product stockpiles that suggest supplies continue to outpace demand.
NEW YORK: New York oil prices hit an eight-month low on Thursday on the back of high US crude and product stockpiles that suggest supplies continue to outpace demand.
New York's main contract West Texas Intermediate for February delivery shed 67 cents to $91.66 per barrel, a level last seen on May 1.
In London, Brent North Sea crude followed suit, losing 76 cents to $106.39 a barrel.
The US Energy Information Administration reported on Wednesday that while crude stockpiles fell modestly, they remained very high.
Gasoline or petrol stocks rose by 6.2 million barrels, well above the 2.0 million consensus estimate of analysts.
"It just seems to be a hangover of yesterday's report," said Matt Smith of Schneider Electric on the price fall.
"Production is surging at a multi-decade high, and with the products not showing much strength."
Bart Melek of TD Securities said crude fell due to "anticipation of a lot of output of new production, in the US alone."
"More supply (is) coming out of the Middle East as well," he added.
Oil prices are likely to face further downward pressure, with Libyan output up to 546,000 barrels a day from 250,000 barrels a day previously.
Despite the increase in output, analysts do not expect Libya to return to its previous output of 1.4 million barrels soon.