NEW YORK: US oil benchmark West Texas Intermediate dropped 3.0 per cent Wednesday to finish at a new low for the year, on worries about weakening demand.
WTI futures for delivery in January ended the day at $72.01 a barrel after US Energy Information Administration data showed a jump in gasoline stockpiles, indicating ebbing consumption in the world's biggest economy.
"Gasoline inventories are rising as demand struggles," said Edward Moya at OANDA trading group.
"This report shows the economy is clearly weakening and does not give energy bulls any reasons to buy into this weakness," he added.
The WTI also closed at a 2022 low on Monday, while international benchmark Brent slipped to a level not seen since January.
Analysts note that conditions in the oil market have loosened compared with earlier in the year, adding to oversupply worries at a time when more economists are warning of recession.
The pullback in oil prices also comes amid trader disappointment at a recent decision by OPEC oil exporters not to cut output, and as market watchers expect a price cap on Russian crude to have little impact on output.