Crude oil is trading near its multi-year low on Wednesday after experiencing large overnight losses. Analysts speculate that further cuts in expected global demand combined with the glut of crude oil supplies are causing crude oil prices to continue to stumble.
MarketWatch reported that on the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $80.72 a barrel, down $1.12, or 1.4 percent in the Globex electronic session. November Brent crude on London's ICE Futures exchange fell $1.22, or 1.4 percent, to $83.82 a barrel. Nymex West Texas Intermediate crude lost 4.55 percent in overnight trading, its steepest loss since November 2012.
According to Investor Wired, OPEC, who produces 40 percent of the crude oil in the world, has continued to keep the crude supply high even in the face of plummeting global demand. In its monthly report, the International Energy Agency (IEA) wrote that OPEC's production was near a 13-month high. Expected demand for the commodity, however, was revised to show that only 700,000 barrels per day would be demanded – down from previous estimates of 900,000 barrels per day.
"Crude oil is being sold again following the monthly report from the IEA in which they saw oil demand growth this year rising at the slowest pace since 2009," said Saxo Bank analyst Ole Hansen to Investor Wired.
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