Investing.com - Oil prices fell to fresh seven-year lows on Thursday, after the Organization of the Petroleum Exporting Countries said it pumped the most crude in more than three years last month, adding to concerns over a glut in global supplies.
In its December monthly report released earlier in the day, OPEC said crude production rose by 230,100 barrels a day in November to 31.695 million, the most since April 2012, as the cartel pressed on with a strategy to protect market share and pressure competing producers.
Non-OPEC supply will fall by 380,000 barrels a day next year to 57.14 million, with an expected contraction in the U.S. accounting for roughly half the drop, the organization said.
Oil futures are down more than 11% since OPEC failed to agree on output targets last week. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.
On the ICE Futures Exchange in London, Brent oil for January delivery shed 24 cents, or 0.61%, to trade at $39.87 a barrel during U.S. morning hours. A day earlier, London-traded Brent sank to $39.57, a level not seen since February 2009.
Brent oil prices are on track to post an annual decline of 27% in 2015, as oversupply concerns dominated market sentiment for most of the year.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange hit an intraday low of $36.52 a barrel, the weakest since February 2009, before trading at $36.84, down 32 cents, or 0.86%.
On Wednesday, Nymex futures ended down 35 cents, or 0.93%, at $37.16. Prices had rallied more than 3% at one point after data showed that oil supplies in the U.S. fell for the first time in 11 weeks last week.
The U.S. Energy Information Administration said crude oil inventories declined by 3.6 million barrels last week. Market analysts' expected a crude-stock rise of 252,000 barrels. Despite the drop, total U.S. oil inventories stood at 485.9 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.
The data also showed that gasoline inventories increased by 0.8 million barrels, below expectations for a gain of 2.2 million barrels, while distillate stockpiles rose by 5.0 million barrels.
U.S. oil futures are down 28% so far this year amid worries over ample domestic supplies. Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC not to cut production in order to defend market share.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.03 a barrel, compared to $2.95 by close of trade on Wednesday.