(MENAFN- Arab News) LONDON: US crude oil prices fell to almost $40 a barrel on Thursday their lowest since the global financial crisis of 2009 as supplies rose in North America and the Middle East filling stockpiles to record levels.
Oil has lost a third of its value since June on high US production record crude pumping in the Middle East and concern about falling demand in Asian economies.
All the main oil futures contracts looked to be heading lower PVM Oil Associates director and technical analyst Robin Bieber said.
"The trend is down and vicious" Bieber said in a brokerage note.
US crude oil was up 10 cents at $40.90 a barrel by 1340 GMT after hitting a new 6-1/2-year intraday low of $40.21.
The US crude front September contract expires on Thursday and has seen intraday volatility as market participants exit their positions.
The US crude October contract hit an intraday low of $40.50 on Thursday. Brent crude futures the global oil benchmark were down 30 cents at $46.86 a barrel still some way off their 2015 low of $45.19 traded in January.
US crude inventories rose 2.6 million barrels last week to 456.21 million barrels the government's Energy Information Administration said.
Markets had been expecting a stock draw and the news pushed WTI down more than 4 percent on Wednesday.