The energy commodity's performance during the Thursday trade session also was impacted by the surprise decision of policy makers with the European Central Bank, who opted to slash interest rates to record low levels. Supplies of the U.S. crude gained for a seventh consecutive week, growing by 1.58 million barrels to amount to 385.4 million, data released by the U.S. Energy Information Administration states.
Following the unexpected rate cut by the ECB, the U.S. dollar pushed ahead against the shared currency of the European Union.
"It's a bit of a perfect storm for crude given very weak Brent technical support, plentiful supplies and seasonally slow refining demands," analyst Andrey Kryuchenkov with VTB Capital in London told the news source on Thursday. "A stronger dollar isn't helping."
At 9:38 a.m. on Thursday, Brent crude oil futures dove 1.08 percent, a $1.14 loss to $104.10 per barrel. West Texas Intermediate crude oil futures fell 0.46 percent, a 44-cent loss to $94.36 per barrel.
Weather to impact demand
Demand for the energy commodity is forecast to be weaker than normal for Western Europe and the U.K. as the region is projected to be as many as three degrees warmer than normal through November 10, according to MetraWeather in England.
This month is likely to see higher-than-normal temperatures in Europe, according to four weather forecasters surveyed by the news source. And last month was warmer than anticipated from the Iberian Peninsula to the U.K., according to MDA Information Systems LLC in Maryland.
"Downward pressure is coming from high stock levels in the U.S., U.S. exports of products to Europe and a mild onset to winter in the northern hemisphere," senior broker Christopher Bellew with Jefferies Bache Ltd. in London told the news source on Thursday.
The warming of Iran
CNBC reports the energy commodity's losses during the past several months are linked with oil-rich Iran's efforts toward diplomacy.
Under sanctions due to Western powers' suspicions about its nuclear program ambitions, Iran elected a new leader whose outward demeanor is excessively more West-friendly than that of his predecessor.
Concerns about the Middle Eastern nation's drive toward possessing nuclear weapons kept the price of oil higher than the psychological threshold price of $100 for nearly 36 months.
Negotiators kicked off the most recent round of discussions in Geneva on Thursday. The top negotiator with the Middle Eastern nation said the parties involved might be able to reach a tentative pact by the end of this week. That would further impact the price of the energy commodity.
"There's a $10-to-$15 'risk premium' in the price of oil, and it's been there for quite a while — just related to what's going on with Iran, its nuclear program and the West's reaction to it," senior director of market research Addison Armstrong with energy management advisory firm Tradition Energy in Stamford, Connecticut told CNBC on Thursday. "So any progress that they make that starts to take away some of that concern about Iran helps to lower the price of oil."
'We expect this trend to continue'
MarketWatch reports one investor who deals with the energy commodity said the next few weeks are going to be quite revelatory as crude oil futures navigate their way on the commodity complex.
"From the fundamental side we have seen builds for almost two months and we expect this trend to continue," managing member Tariq Zahir with Tyche Capital Advisors told MarketWatch on Wednesday. "We feel in the days and weeks to come we will see crude test the lows we saw earlier this week."
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