Investing.com - Oil futures gave back some of the previous session's gains on Wednesday to trade near the lowest level since 2009 amid ongoing concerns over ample global supplies.
On the ICE Futures Exchange in London, Brent oil for January delivery declined $1.16, or 1.73%, to trade at $65.69 a barrel during European morning hours.
A day earlier, London-traded Brent prices tumbled to $65.29, a level not seen since October 2009, before turning higher to settle at $66.84, up 65 cents, or 0.98%.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January dropped $1.13, or 1.77%, to trade at $62.69 a barrel.
Nymex oil futures hit $62.25 on Tuesday, the weakest level since July 2009, before rallying to end at $63.82, up 77 cents, or 1.22%.
London-traded Brent prices have fallen nearly 43% since June, when it climbed near $116, while WTI futures are down almost 42% from a recent peak of $107.50 in June.
The Organization of Petroleum Exporting Countries said on November 27 that it would maintain its output target at 30 million barrels a day, disappointing hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.
Iraq’s state-run oil company lowered official selling prices for its crude in January, following a similar move from Saudi Arabia, indicating that OPEC exporters are stepping up a battle for market share with cheaper U.S. shale oil.
Oil traders awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles fell by 2.3 million barrels last week, while gasoline stockpiles were forecast to increase by 2.6 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 4.4 million barrels in the week ended December 5.
The report also showed that gasoline stockpiles increased by 6.7 million barrels, while distillate stocks expanded by 4.3 million barrels.