Economic and financial struggles in the euro zone as well as slow development and growth in the U.S. labor market indicate a reduced demand for the energy commodity. The U.S. Energy Department noted on Wednesday that U.S. supplies of crude oil rose last week to nearly 380 million barrels, the highest amount since 1990.
"One could perhaps argue that with inventories building and global oil demand conditions softer in the first quarter, prices were on the high side to begin with," states a report penned by Barclays, the AP reports. Nonetheless, "the path of least resistance in prices is likely to be a slow grind higher from here in the coming months."
At 3:39 p.m. on Thursday, crude oil futures fell 0.71 percent, an 80 cent loss to $112.40 per barrel.
China, which trails only the U.S. for consumption of the energy commodity, also was likely to minimize its demand for crude oil as trade data indicated a slowdown, Reuters reports.