Oil prices tank to November levels on unexpected rise in US inventories

Brent crude fell to $48

Oil prices fell over 4% on Wednesday after an unexpected rise in US inventories caused concern over whether output cuts from the world's major producers had done little to halt the global glut.

The price of Brent Crude fell 4.1% to $48.06 a barrel, its lowest level since November while West Texan Intermediate declined 5.1% to $45.72 a barrel. According to the Financial Times, the sharp fall in oil prices was due to the Energy Information Administration (EIA) reporting US inventories had increased 3.3 million barrels to 513.2 million barrels, countering estimates of a decline of similar size in its weekly report. The report also revealed a shock increase in diesel and petrol inventories after the EIA estimated US demand fell by 1 million barrels a day last week. Furthermor...