Investing.com - Brent oil futures extended losses to hit the weakest level since late 2010 on Wednesday, as investors piled on to their short positions in anticipation of lower prices amid speculation the Organization of the Petroleum Exporting Countries will not cut output to support the market.
On the ICE Futures Exchange in London, Brent oil for December tumbled to a daily low of $83.74 a barrel, a level not seen since December 2010.
Prices last traded at $84.49 during European morning hours, down 92 cents, or 1.08%.
London-traded Brent futures plunged $4.00, or 4.47%, on Tuesday to end at $85.41 a barrel. It was the worst one-day loss in three years.
Kuwait cut official selling prices to Asian buyers in an effort to retain its market share, following similar moves from core OPEC members Saudi Arabia, Iraq and Iran.
Global supplies have far outpaced demand in recent months, sparking speculation among traders about whether OPEC would lower production to prop up prices.
OPEC oil ministers are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target of 30 million barrels per day for early 2015.
A report last week showed OPEC oil output hit a two-year high of 31 million barrels per day in September, led by higher output from Iraq and Libya.
The 12-member organization is responsible for 40% of global oil production.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in November hit a session low of $80.38 a barrel, the weakest level since June 2010, before trimming losses to trade at $80.85, down 99 cents, or 1.22%.
Nymex oil futures dropped $3.90, or 4.55%, on Tuesday to settle at $81.84 a barrel. It was the worst daily loss since November 2012.
Market players awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 2.8 million barrels in the week ended October 10.
The reports come out one day later than usual due to Monday's Columbus Day U.S. federal holiday.
London-traded Brent prices have fallen nearly 26% since June, when it climbed near $116 following violence in the Middle East and North Africa, while WTI futures are down almost 23% from a recent peak of $107.50 in June.
The International Energy Agency cut its forecast for global oil demand for the fourth month in a row on Tuesday.
The agency said it now expected global oil demand for 2014 to total 92.4 million barrels a day, down 200,000 barrels per day from its September report, amid ample global supplies and slowing demand in the U.S., China and Europe.
Investor sentiment was also hit amid concerns about global economic weakness, while growing fears over the spread of Ebola also weighed.