Oil plumbs 1-week low on US oversupply concerns

Oil prices fell as the European market opened today, to resume its slide after it halted yesterday, as the West Texas Intermediate (WTI) slumped to 1-week low on the renewed concerns about the US oversupply after a massive surge in the US crude inventories and oil production for the fourth consecutive week.

WTI fell to $51.44 a barrel (1-week low), from the opening of $52.63, with a session-high of $52.82.

Brent fell to $57.81 a barrel, from the opening of $58.27, with a high of $58.52.

WTI closed higher by 0.1% yesterday after it shed 0.5% in the previous day, and Brent futures also rose by 0.3%, on a sharp decline in OPEC output in September.

The US Energy Information Administration (EIA) revealed yesterday that oil inventories rose by about 2.9 million barrels during the week ending October 4th, the fourth weekly increase, beating forecasts of a 1.8 million barrels.

The total US commercial inventories rose to 426 million barrels, the highest level since the week ending in August 23rd, which shows that the domestic demand has worsened in the US, while production rose by 200,000 barrels, to reach an all-time record high of 12.6 million barrels per day.