Brent Crude Oil plunges on US Energy Department report

<p>Brent Crude Oil has depreciated as stockpiles rise and demand dwindles.</p>

Brent Crude Oil Futures have plunged in commodities trading this afternoon (October 3rd) following a US government report.

The fuel fell to a two-month low after the Energy Department revealed crude output increased to the highest level in more than 15 years, while consumption of the black stuff fell.

According to the report, crude production was up by 11,000 barrels a day to 6.52 million for the week ending September 28th, which is the most since December 1996.

But total fuel demand has slipped 0.3 per cent to 18.3 million barrels a day in the four weeks to the end of last month.

The department stated crude oil supplies dropped by 482,000 barrels to 364.7 million barrels, while inventories were expected to rise by 1.5 million barrels, according to a Bloomberg survey.

At 16:30 BST, Brent Crude Oil Futures on the ICE Futures Europe index were down 2.6 per cent to a value of $108.71 per barrel.

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