Oil prices drop as US stocked more crude than forecast

London: Crude prices fell Thursday as the US government said the country's commercial crude stockpiles rose faster than market expectations, adding to concerns about a supply glut.

US benchmark West Texas Intermediate (WTI) for delivery in November slipped 89 cents to USD 45.73 a barrel compared with yesterday's close.

Brent North Sea crude for November delivery shed 58 cents to stand at USD 48.57 a barrel in late London deals.

The US Department of Energy said the country's crude inventories jumped by 7.6 million barrels last week, nearly three times the amount predicted by market forecasters.

The stocks data "is pushing oil prices down, and the overall picture looks pretty bearish (for crude futures) as no producing countries seem ready to cut production", said Robert Montefusco, a broker at Sucden Financial.

DNB Bank analyst Torbjorn Kjus noted that the market was "in peak refinery maintenance season and people should expect stock builds for crude oil for another three (to) four weeks".

The latest inventory data was published against a backdrop of market concern about a supply glut owing in part to weaker demand from China, the world's biggest energy consumer.

Oil prices have fallen every day this week as disappointing Chinese and US economic data reinforced worries about a slowing global economy.

Prices have been weighed down also by a forecast from the International Energy Agency that pointed to much slower oil demand growth next year.

But the OPEC oil producers cartel seems intent on pumping out crude in a bid to maintain market share with the United States.

A key reason for the 50-per cent slump in oil prices between June last year and the start of 2015 was owing to the sizeable extraction of crude oil from North American shale rock.