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The price of oil has dropped sharply after figures showed a big rise in US oil
stockpiles and falling orders for American manufactured goods.
US light crude fell $3.88, almost 6%, to $63.35 a barrel. London Brent dropped
$3.64 to $66.24 a barrel.
A rise in US oil stocks of 5.1m barrels was unexpected, as was the sharp fall
of 2.5% in orders in June for durable manufactured goods at US factories.
The recent strong run in stock markets had pushed the oil price higher.
But this run in stock prices seems to have come to an end this week.
"The build [in supplies] this week will put more pressure on oil, especially
given that we were already seeing return of risk aversion across markets, with
the US dollar climbing and the stock market lower," said Rachel Ziemba at RGE
Monitor.
The rise in inventories of oil shows how much unwanted oil is in storage,
reflecting a big fall in demand.
Last July, the price of oil peaked at around $147 a barrel.