Oil prices fell further today after new data stoked concern that the supply glut is continuing to build against a backdrop of slowing global growth.
Brent crude, the global benchmark, added to earlier losses shedding 1.69 per cent to $33.83 per barrel. Meanwhile, West Texas Intermediate crude, the US benchmark, fell 2.27 per cent to $31.42.
U.S. government data showed that Cushing stockpiles rose to 65.1m, marking a fourth consecutive week of record highs. Inventories for all of the US are at all-time peaks above 507m barrels.
"Throwing in a further Cushing build to the overall record in stocks makes it very difficult for this market to rally," said Pete Donovan, broker at Liquidity Energy, said.
Crude prices already fell earlier in the day, as investors looked through strong demand for petrol and instead focused on global oversupply.
"The basic overriding position in the oil market at the moment is that the global production exceeds global demand by quite a wide margin," Ric Spooner, chief market analyst at CMC markets, said.
The global supply glut has seen 1m to 2m barrels of crude produced every day above demand.
The dip came despite data released yesterday showing soaring US petrol demand offset arise in crude stockpiles. In more good news oil markets, gasoline stockpiles fell for the first time since November last year as low margins forced refineries to scale back production.
"It may be a little early to call it a trend but we are beginning to see some signs of cuts," Spooner added.
"If we do start to see the (production) fall gradually from here that... might bring a bit of stability to the market."