Oil Prices Plummet Amid Weaker Demand and Higher U.S. Crude Stocks

Oil prices declined on Thursday as investors assessed weaker global demand prospects and higher U.S. crude stocks. Brent futures fell 91 cents, or 1%, to $88.07 a barrel at 0800 GMT, trimming gains over the prior six sessions.

U.S. West Texas Intermediate (WTI) crude dropped 96 cents, or 1.2%, to $82.31 after advancing over the past five sessions. Crude inventory build in the U.S. kept prices below $90 a barrel along with lower demand estimates by OPEC and the International Energy Agency.

PVM analyst John Evans stated that crude inventories rose by 17.4 million barrels to 424.4 million in the week ended August 7, their highest since June 5. The IEA expected a contraction of 1.6 million bpd in consumption this year, down from last month's forecast of 1 million bpd.