Crude oil price drops to July lows overnight

The price of oil saw weakness overnight, with a barrel of US crude falling to just $98.79 (£61.26). The drop below $100 takes crude to its lowest point since July.

Mike van Dulken, head of research at Accendo Markets, says that "oil remains weak on the US stockpile data yesterday as well as a rebound by the US dollar".

West Texas Intermediate (WTI) traded at a three-month low for the second day in a row yesterday, as the US increases crude stocks. On Monday the Energy Information Agency said US inventories had increased by 4m barrels, in the week ending 11 October. The discount against European Brent also widened to the largest point in six months.

A Bloomberg survey concluded that WTI may continue trading below $100 a barrel until the end of the year as US supplies continue to increase. The survey showed that the mean of 16 analysts and traders polled believed futures will drop by $2 by December 31.

Increasing stocks have been attributed to the maintenance and changing pipeline flows near Oklahoma oil hub of Cushing changing the dynamic of the oil market over the last two weeks.