LONDON: Brent crude oil fell to a new five-year low below $65 a barrel on Wednesday on mounting signs of oversupply and lacklustre demand as global economic growth falters.
The price of the North Sea oil benchmark has fallen more than 40 percent since June as new supplies of high-quality crude from North America have fed a glut of fuel in many parts of the world.
Data from the U.S. Energy Information Administration showed U.S crude oil stocks rose by 1.45 million barrels to 380.79 million barrels in the last week, compared with analysts' expectations of 2.2 million drop.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.02 million barrels, the EIA said. Gasoline stocks rose by 8.2 million barrels, compared with analysts' expectations in a Reuters poll of 2.6 million.
Brent futures for January fell to $64.04 a barrel, their lowest since September 2009, before recovering slightly to trade around $65.50 by 1550 GMT.
U.S. crude was down $2.46 at $61.36, having fallen to $60.88, its lowest since July 2009.
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) forecast demand for the group's oil will drop to 28.92 million barrels per day (bpd) in 2015, down 280,000 bpd from its previous expectation.
"There is a growing realisation that the first half of next year is going to look very weak," said Gareth Lewis-Davies, strategist at BNP Paribas. "You start to price that in now."
OPEC members are divided on how to respond to the global surplus and falling prices. The cartel may still hold an emergency meeting before its June gathering, Algeria's energy minister said on Tuesday.
Italian oil and energy group Eni said OPEC may cut output in the spring and that oil prices will remain between $66 and $75 per barrel next year.
Top oil producer Saudi Arabia blocked production cuts at OPEC's meeting in November and has taken steps to shore up its market share.
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