Crude oil prices closed lower on Thursday after earlier extending their slide to near seven-year lows as traders looked beyond a drop in U.S. crude stockpiles to focus on a global supply glut, while a stronger dollar weighed on commodities.
Futures of Brent and U.S. crude's West Texas Intermediate (WTI) struck February 2009 lows for a fourth day in a row in continued fallout from an OPEC meeting last week that abandoned price support measures. Unimpressive U.S. government inventory data from Wednesday added to the drag.
In its latest monthly report on Thursday, the OPEC forecast that oil supply from countries outside the group — including the United States and Russia — would fall by 380,000 barrels per day (bpd) next year, three times more than previously expected.
Despite that, OPEC left its forecast for 2016 world oil demand unchanged at 1.25 million bpd. It said its group output rose by 230,000 bpd in November to 31.7 million bpd.