Investing.com - West Texas Intermediate oil futures traded at the lowest level in more than 17 months on Thursday, as ample supplies and concerns over weak demand weighed.
On the New York Mercantile Exchange, crude oil for delivery in November traded at $89.72 a barrel during European morning hours, down $1.01 from a closing price of $90.73 on Wednesday.
U.S. oil prices hit a session low of $89.49 earlier in the day, a level not seen since April 2013.
Futures were likely to find support at $89.21 a barrel, the low from April 24, 2013, and resistance at $92.96 a barrel, the high from October 1.
A day earlier, U.S. oil prices lost 43 cents after the U.S. Energy Information Administration said that U.S. crude oil inventories decreased by 1.4 million barrels last week, compared to expectations for a gain of 0.7 million barrels.
The report also showed that Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, increased by 315,000 barrels to 20.5 million last week.
Appetite for growth-linked assets weakened after a slew of disappointing manufacturing reports on Wednesday showed that factory activity in the U.S. slowed more than expected last month, Germany’s manufacturing sector slid into contraction territory for the first time in 14 months, while activity in China stalled.
Concerns over unrest in Hong Kong and a confirmed Ebola diagnosis in the U.S. also contributed to the risk-off mood.
Investors now looked ahead to the release of the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market.
Market players are also awaiting the European Central Bank's policy meeting later in the day for further details on the central bank's plan to purchase asset-backed securities, first announced in September.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery shed $1.45 to hit $92.71 a barrel during European morning trade.
London-traded Brent prices hit $92.59 earlier in the session, a level not seen since June 2012, as global supplies were seen as ample despite ongoing violence in North Africa and the Middle East.