Oil prices slid after mixed US petroleum report which registered an increase in oil reserves with a drop in production. For the month of October delivery, loss of 27 cents to $45.98 per barrel was reported by US benchmark West Texas Intermediate (WTI).
Brent North Sea crude for October slid by 32 cents to $50.17 in early afternoon trade through London deals. ” Oil prices have been hit by a new massive sell-off on Wednesday after the publication of weekly statistics on American crude stocks,” said analysts at traders PVM.
Oil prices moved south sharply after weak manufacturing data from China and this was after surging more than 25%. Moreover the outlook for demand growth by United States was not too promising. Both data from China and United States being the two biggest energy consumers had inevitably caused the oil prices to slid significantly.