Crude oil prices continued to fall along with the stock market Thursday while President Donald Trump had strong words for countries that ignore USA oil sanctions.
An oil tanker unloads crude oil at a crude oil terminal in Zhoushan, Zhejiang province, China July 4, 2018.
Brent crude last week reached $86.74, the highest since 2014.
USA oil output is expected to rise 1.39 million bpd to a record 10.74 million bpd, the EIA said in its monthly forecast on Wednesday. WTI hit its lowest since September 21.
USA crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, the American Petroleum Institute said on Wednesday.
Brent prices fell more than $1.83 to $81 a barrel in mid-day trading while WTI prices fell $1.54 to $71.
Crude inventories climbed by 9.7 million barrels in the week to October 5 to 410.7 million, compared with analyst expectations for an increase of 2.6 million barrels.
Falling U.S. equity markets and a global risk-off environment also weighed on crude futures. They earlier touched their lowest since September 27 at $81.35, after closing 2.2 percent lower on Wednesday.
"The demand side of the oil equation is always much more hard to discern than the more transparent supply side and as equities slide amidst rate increases, the oil market could begin to discount a worst case scenario with regard to oil demand expectations", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
"Prices are peaking at the most opportunistic time given waning global growth narrative", said Stephen Innes, head of trading APAC at OANDA in Singapore.
In the United States, almost 40 percent of daily crude oil production was lost from offshore US Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael.
The cuts represent 680,107 barrels per day of oil production, BSEE said, citing reports from 30 companies. It has since weakened to a tropical storm.