Oil slid below $62 today as stocks swelled and demand stuttered in the United States.
US light crude oil futures fell 63 cents to $61.78 a barrel, taking a three-day losing streak to over 3 per cent.
London Brent crude was down 47 cents at $58.13. The fall came after US data yesterday showed a big build in crude inventories and a shock rise in gasoline stocks, reflecting weak underlying demand and hefty imports.
The International Energy Agency (IEA) meeting in Paris today to discuss the possibility of releasing more emergency oil added to downward pressure.
The IEA, adviser to 26 industrialised nations, leapt into action with a 30-day release of crude oil and refined products like gasoline on September 2nd, days after Hurricane Katrina slammed into US Gulf rigs and refiners.
"A possible second release will be discussed but the decision will depend on the member countries," said a spokeswoman for the IEA.
Analysts were deeply divided on the outlook. Some said oil could fall further if the latest hurricane to menace the Gulf of Mexico - Hurricane Wilma - stays its current course toward Florida and away from oil facilities.
The stock-build takes US crude supplies nearly 12 per cent above a year earlier after hurricanes Rita and Katrina closed Gulf Coast refineries and slashed demand for feedstock.
The US data also showed a decline in total oil product demand deepening to 3.2 per cent over the past four weeks, a bigger drop than last week's 2.8 per cent, although gasoline and distillate deliveries maintained similar year-on-year weakness.