Oil drops to lowest in 3 months as demand worries grow

The news: Oil prices have hit their lowest level in more than three months on concerns over waning demand in the US and China.

The numbers: Brent crude futures settled at USD79.54 a barrel, down 2.5%, while US West Texas Intermediate (WTI) crude finished at USD75.33 a barrel, down 2.6%.

The context: Data from China, the world's biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, feeding worries about the energy demand outlook, despite its crude oil imports in October showing robust growth. In the eurozone, data showing falling retail sales also highlighted weak consumer demand and the prospect of recession. Also weighing on prices, US crude oil stocks rose by almost 12 million barrels last week, market sources told Reuters. US crude production is set to rise this year but petroleum consumption will fall by 300,000 barrels per day (bpd), the EIA said on Tuesday.