The oil price dropped sharply again on Thursday, revisiting lows not seen for more than a month.

Global benchmark Brent crude fell more than one per cent and at one point dipped below $46 a barrel, while its US counterpart, West Texas Intermediate, sunk 1.5 per cent to settle at $44.66, its weakest close in five weeks.

Both are back below their levels of 28 September, the day the 14-nation Opec cartel announced a shock supply cut that sent oil on a prolonged rally. Brent reached a 2016 high of $54 a barrel in mid-October.

Sentiment has turned since a spate of bearish data on oil reserves in the US, which is fuelling fears that we have not seen the end of a global supply glut that has persisted for more than two years.

This week, private sector data suggesting that US crude stockpiles had grown by nine million barrels in seven days was followed by a more comprehensive official report, described as the “most bearish report of all time”, putting the figure at a record 14 million barrels.

Yesterday, new figures revealed oil reserves at the main US delivery hub in Cushing, Oklahoma, grew by 1.2 million barrels last week.

Source: The Week