Investing.com - Oil futures reversed earlier gains to hit the lowest levels of the session on Thursday, amid indications Saudi Arabia lowered prices to buyers in the U.S. and Asia.
On the ICE Futures Exchange in London, Brent oil for January delivery fell by as much as 1.53% to touch a daily low of $68.85 a barrel, before recovering to trade at $69.35 during U.S. morning hours, down 57 cents, or 0.82%.
A day earlier, London-traded Brent prices lost 62 cents, or 0.88%, to settle at $69.92 a barrel. Futures slumped to $67.57 a barrel on December 1, the weakest level since October 2009.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January lost 93 cents, or 1.38%, to trade at $66.45 a barrel. Prices declined by as much as 1.85% earlier to hit $66.13.
Nymex oil futures rose 50 cents, or 0.75%, to settle at $67.38 a barrel on Wednesday. Prices hit $63.72 on December 1, a level not seen since July 2009.
Saudi Arabia’s state-run oil company lowered official selling prices for its crude in January to the lowest in at least 14 years for buyers in the U.S. and Asia.
The move suggested that the kingdom is stepping up a battle for market share with cheaper U.S. shale oil after last week's OPEC decision to keep production quotas unchanged.
London-traded Brent prices have fallen nearly 40% since June, when it climbed near $116, while WTI futures are down almost 38% from a recent peak of $107.50 in June.
The Organization of Petroleum Exporting Countries said on November 27 that it would keep its official production target unchanged at 30 million barrels a day, disappointing hopes the oil cartel would lower output to support the market.
The 12-member group is responsible for approximately 40% of global supply.
Meanwhile, European Central Bank President Mario Draghi indicated that the bank will not embark on quantitative easing for now, instead saying it will reassess its stimulus program in the first quarter of 2015.
The bank left euro zone interest rates on hold at their current record lows of 0.05% earlier Thursday, in a widely anticipated decision.
In the U.S., data showed that the number of people who filed for unemployment assistance in the U.S. fell in line with expectations, underlining optimism over the strength of the labor market ahead of Friday’s nonfarm payrolls report for November.
The Labor Department reported that the number of people filing for initial jobless benefits last week fell by 17,000 to 297,000.