Brent oil hits lowest since late August; dollar dips

Wed Nov 11, 2015 5:14pm EST
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By Caroline Valetkevitch

NEW YORK (Reuters) - Brent crude oil prices hit their lowest since late August on Wednesday on worries about growing U.S. stockpiles, while the U.S. dollar took a breather from recent gains.

U.S. stocks ended a choppy session lower, with the drop in oil weighing on energy shares. European shares ended up 0.7 percent.

Copper prices ended higher after nearing a six-year low on mixed Chinese data, which showed growth in the world's second-biggest economy was still in low gear.

Worries that U.S. crude inventories are building pressured oil prices. [nL3N1361EB]

American Petroleum Institute data showed U.S. crude stockpiles jumped last week in a seventh week of builds. The build was also above forecasts by analysts in a Reuters poll. The U.S. Energy Information Administration issues official inventory data on Thursday.

Brent LCOc1 fell $1.63 to settle at $45.81 a barrel, while U.S. crude CLc1 dropped $1.28 to settle at $42.93.

"You can talk all you want about oil demand being better next year and beyond, but right now we have a heck of a glut on our hands that I think has to be priced in some more," said John Kilduff, partner at New York energy hedge fund Again Capital.

The dollar, which had been on a charge since strong U.S. jobs data last week boosted the probability of a Federal Reserve interest rate hike next month, slid against most major currencies as investors booked profits from the recent gains.   Continued...

A man looks at an electronic board showing Japan's Nikkei average and related indices at the Tokyo Stock Exchange (TSE) in Tokyo August 26, 2015. REUTERS/Yuya Shino