Investing.com - Crude oil futures attempted to bounce off levels not seen since the peak of the global financial crisis in 2009 on Thursday, as investors returned to the market to seek cheap valuations in wake of recent losses.
Crude oil for delivery in October on the New York Mercantile Exchange slumped to an intraday low of $40.52 a barrel, a level not seen since March 2009, before trading at $41.25 during U.S. morning hours, down 2 cents, or 0.05%.
A day earlier, New York-traded oil futures plunged $1.85, or 4.29%, to end at $41.27 after a surprise buildup in U.S. oil stockpiles underlined concerns about a growing global oil glut.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.6 million barrels last week, confounding expectations for a decline of 0.8 million barrels.
Total U.S. crude oil inventories stood at 456.2 million barrels, remaining near levels not seen for this time of year in at least the last 80 years.
Nymex oil futures have been under heavy selling pressure in recent months as worries over high domestic U.S. oil production weighed.
According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. increased by two last week to 672, the fourth straight weekly gain.
There are still about 60% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably in recent weeks, fueling concerns that U.S. shale production could rebound in the months ahead.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery shed 34 cents, or 0.71%, to trade at $46.83 a barrel after hitting a daily low of $46.32, the weakest level since March 2009.
On Wednesday, London-traded Brent prices lost $1.65, or 3.38%, to close at $47.16, as worries about slowing demand from China and a glut of supply drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $5.58 a barrel, compared to $5.89 by close of trade on Wednesday.
The US dollar index, which tracks the greenback against a basket of six major rivals, was down 0.25% to 96.18, after falling sharply on Wednesday, as dovish minutes from the Federal Reserve's July meeting dented expectations for a rate hike in September.
According to the minutes, Fed officials were concerned about "recent decreases in oil prices and the possibility of adverse spillovers from slower economic growth in China."
The Shanghai Composite took investors on another volatile ride on Thursday, falling by as much as 2.2% after the open, before paring losses after the midday break, and then plunging again in the last hour of trade to end down 3.4%.
Chinese stock markets sold off sharply earlier in the week amid growing concerns over the health of the Asian nation's economy and worries that Beijing may allow the yuan to continue to depreciate, fueling fears over a currency war that could destabilize the global economy.
Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation's demand for oil will decline.
Worries that China’s recent devaluation of the yuan will slow down the country’s import of oil also weighed.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.