Petroleum prices plummeted on Wednesday, continuing their recent slide, after surging U.S. crude output hit another record and domestic inventories rose more than expected.
In early trade, prices had risen after a report that Russia and Saudi Arabia are discussing whether to cut crude output next year. Then came word from the U.S. Energy Information Administration (EIA) that domestic crude inventories rose 5.8 million barrels in the latest week, more than double analysts' expectations.
Crude output hit 11.6 million bpd, a weekly record, though analysts will watch to see if monthly data confirms that.
U.S. West Texas Intermediate crude ended Wednesday's session down 54 cents, or nearly 1% at $61.67 U.S., its lowest closing price since mid-March. WTI touched a nearly eight-month low at $61.20 on Wednesday, falling more than 20% from its recent high and briefly trading in bear market territory.
Brent crude, the global benchmark, were down 13 cents to $72.00 U.S. a barrel by mid-afternoon on Wednesday. The contract hit $71.36 on Tuesday, near its lowest since Aug. 16.
Brent crude, the global benchmark, retreated 49 cents to $71.64 U.S. a barrel.
