Oil slips on signs of an increase in supplies and an economic downturn

BEIJING (Reuters) – Oil prices fell on Thursday, prolonging losses from previous sessions, due to signs of rising supply and growing fears that demand could weaken in the prospect of a global economic downturn.

The January LCOc1 futures contract on Brent lost 46 cents, or 0.61%, to $ 74.58 per barrel by GMT0451. CLc1 futures for West Texas Intermediate (WTI) crude fell 41 cents to $ 64.90 per barrel.

Both indices posted their worst monthly performance since July 2016 on Wednesday, with Brent dropping 8.8% for October and WTI 10.9%.

Thursday's drop came after data from the US Energy Information Administration showed that crude oil inventories rose for a sixth straight week.

"The solid oil stocks built are likely to keep downward pressure on oil prices," analysts at ANZ Research said.

Nevertheless, Goldman Sachs reiterated Thursday a forecast for the end of the year for a Brent price of 80 dollars. The bank said oil demand growth in 2018, albeit a slight decline, remains above expectations, as Chinese demand continues to be resilient, despite worries over the world's second-largest economy.

At the same time, a Reuters survey found that the Organization of the Petroleum Exporting Countries (OPEC) pushed oil production in October to its highest level since 2016; set to begin Nov. 4.

US President Donald Trump said Wednesday in a presidential memorandum that he had determined that there was enough oil and petroleum products from countries other than Iran to allow a reduction in purchases of this country.

China released disappointing PMI data as its manufacturing sector expanded in October at its weakest pace in more than two years.