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Crude oil falls to 17-month lows on demand concerns

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Investing.com -

Investing.com - Crude oil futures held near the previous session's multi-month lows on Thursday, as ample supplies and concerns about weak demand continued to weigh.

On the New York Mercantile Exchange, crude oil for delivery in October slumped to a daily low of $91.19 a barrel, a level not seen since May 2, 2013.

Prices recovered to last trade at $91.39 during European morning hours, down 28 cents, or 0.31%.

Futures were likely to find support at $90.65 a barrel, the low from May 2 and resistance at $93.03 a barrel, the high from September 10.

A day earlier, U.S. oil prices lost $1.08, or 1.16%, to settle at $91.67 a barrel after data showed that oil supplies in the U.S. fell less than expected last week, while gasoline stockpiles rose unexpectedly.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 1.0 million barrels last week, compared to expectations for a decline of 1.2 million barrels.

The report also showed that total motor gasoline inventories increased by 2.4 million barrels, compared to forecasts for a decline of 0.2 million barrels, while distillate stockpiles rose by 4.1 million barrels.

The unexpected increase in gasoline stocks was seen as bearish for oil prices, amid speculation of slowing demand.

Market players looked ahead to the release of the weekly government report on initial jobless claims later in the session for further indications on the strength of the economy and the future path of monetary policy.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery dropped to a session low of $97.40 a barrel, the weakest level since April 18, 2013.

Prices were last at $97.51, down 52 cents, or 0.53%. Futures fell $1.12, or 1.13%, on Wednesday to end at $98.04 a barrel.

U.S. President Barack Obama said Wednesday in an address to the nation that the U.S. would conduct a "systematic campaign" of airstrikes against Islamic State militants in Syria.

Oil traders shrugged off the news as market analysts said U.S. airstrikes will likely lower the risk of oil supply disruptions from the region.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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