One analyst, Phil Flynn of Price Futures in Chicago, said of Tuesday's sell-off: "It's like a run on the bank". OPEC and its partners, meanwhile, are said to be considering a bigger-than-anticipated cut in production.
Oil's slide accelerated on Tuesday (Nov 13), with United States futures suffering their steepest one-day loss in more than three years due to ongoing worries about weakening global demand and oversupply. Now, investors are assessing if the Organization of Petroleum Exporting Countries and its allies will curb production despite President Donald Trump's criticism of the plan. America's increasing inventories suggests "the nation's crude exports could become more active, resulting in excess global supplies".
WTI for December delivery dropped US$4.24 to end the session at US$55.69 a barrel on the New York Mercantile Exchange. Total volume traded on Thursday was about 23% higher than the 100-day average.
Worldwide benchmark Brent crude oil futures were down 9 cents at $65.38 per barrel. The contract fell 26 cents to $59.93 on Monday, the lowest close since February 13.
In the report, OPEC said its oil output rose further in October by 127,000 bpd to 32.90 million bpd after the June deal.
A closely watched meeting between the Organization of Petroleum Exporting Countries and its allies including Russian Federation on Sunday yielded no formal change in output policy, but delegates warned they may need "new strategies".
The relative strength index (RSI) for both Brent and United States crude remained below 30, a technical level often regarded as signalling a market that has fallen too far. This is despite the fact that Saudi Arabia cut 500K barrels for December and signalled that it looks like OPEC is going to cut production.
The meeting in Abu Dhabi raised the odds of a production cut next month to "fairly high", and the reduction may be in the 1 million-barrels-a-day range, according to RBC Capital Markets.
Official storage data is due on Wednesday from the Energy Information Administration, with analysts expecting a 3 million barrel rise in commercial crude inventories.
Anxious by a drop in oil prices and rising supplies, the Organization of the Petroleum Exporting Countries is talking again of reducing production just months after increasing it.