Oil fell to about $ 76 a barrel on Wednesday, shrinking its losses, after hitting its lowest level since late August, affected by concerns about weak demand and abundant supplies, even under US sanctions impending on Iran's crude exports.
In a sign of oversupply, the US Petroleum Institute said on Tuesday that US crude inventories rose 9.9 million barrels above expectations. The government supply report is due to be published by 14:30 GMT.
Brent crude fell 37 cents to $ 76.07 a barrel by 10:20 GMT, and crude fell earlier in the day to $ 75.11 a barrel, the lowest since Aug. 24. US crude was little changed at $ 66.43 a barrel.
Oil fell sharply in the previous session, with Brent closing down 4.3 percent.
On Tuesday, oil was hit by equity selling on concerns about economic prospects. The International Energy Agency (IEA) expects slower growth in oil demand in 2019 because of the global economic slowdown.
Asian stocks rallied today, with sentiment boosted by stimulus in China, while European stocks gained modestly.
While US sanctions against Iran, which starts on Nov. 4, are expected to lead to a shortage of supplies, other producers, particularly Saudi Arabia, the world's top oil exporter, are already pumping more oil and are ready to raise production again if necessary.
