Investing.com - U.S. oil futures fell to the lowest level since April 2013 on Wednesday, as investors positioned themselves for a bearish weekly supply report later in the day.
On the New York Mercantile Exchange, crude oil for delivery in November hit a session low of $87.39 a barrel, a level not seen since April 18, 2013.
Prices recovered to last trade at $87.75 a barrel during European morning hours, down $1.10, or 1.24%.
A day earlier, Nymex oil futures lost $1.49, or 1.65%, to settle at $88.85, as worries about the strength of global growth drove prices lower.
Futures were likely to find support at $85.91 a barrel, the low from April 18, 2013, and resistance at $90.57 a barrel, the high from October 7.
Market players 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 rose by 1.6 million barrels last week, while gasoline stockpiles were forecast to decrease by 1.0 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories increased by 5.1 million barrels in the week ended October 3, more than expectations for a rise of 1.4 million barrels.
The report also showed that gasoline stockpiles increased by 2.5 million barrels, while distillate stocks fell by 1.1 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery tumbled $1.16, or 1.26%, to hit $90.95 a barrel.
London-traded Brent futures fell to $90.81 earlier in the session, the lowest since June 2012.
Meanwhile the spread between the Brent and the WTI crude contracts stood at $3.20 from $3.26 in the previous session.
The International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.
The organization is now forecasting global economic growth of 3.3% this year, down from 3.4% in July and expects growth of 3.8% in 2015, compared to an earlier prediction of 4.0%.
Investor sentiment was also hit after a report showing a steep decline in German factory orders in August fuelled fears that the euro zone’s largest economy is falling into a recession.