Oil prices continue to fall

World oil prices recorded a fourth consecutive day of decline due to concerns about slowing demand in Europe.

Brent crude futures fell 28 cents, or 0.3%, to $87.79 a barrel at 0627 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 31 cents, or 0.4%, to $83.43 a barrel.

Euro zone business activity data unexpectedly weakened, suggesting the EU could fall into recession , creating a drag on the oil demand outlook.

In the Middle East, humanitarian aid was delivered. Leaders also discussed efforts to prevent wider conflict.

“The fall in oil prices coincided with a slight decline in the European PMI, which suggests that there was some weakness on the demand side. Threats of supply disruptions related to the tensions are easing,” said Vishnu Varathan, an economist at Mizuho Bank.

China's demand for crude oil could be curbed as Beijing caps refining capacity at 1 billion tonnes by 2025 to curb carbon emissions.

A decline in crude oil inventories in the United States, the world’s largest oil consumer, also supported oil prices. According to market sources citing data from the American Petroleum Institute on Tuesday, US inventories fell by about 2.7 million barrels in the week ended October 20.

US government data on inventories will be released on Wednesday.

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