Investing.com - West Texas Intermediate oil futures tumbled below the $27-level to re-approach the lowest level in almost 13 years in Europe trade on Thursday, as record crude inventories at the Cushing delivery hub underlined concerns over a supply glut.
Crude oil for delivery in March on the New York Mercantile Exchange fell to an intraday low of $26.56 a barrel, before recovering slightly to trade at $26.88 by 08:55GMT, or 3:55AM ET, down 56 cents, or 2.02%. A day earlier, prices declined 49 cents, or 1.75%.
The U.S. Energy Information Administration said Wednesday that supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 523,000 barrels last week to an all-time high just shy of 65 million barrels.
Total oil inventories declined by 754,000 barrels to 502.0 million barrels, remaining near levels not seen for this time of year in at least the last 80 years.
Gasoline inventories increased by 1.3 million barrels, compared to expectations for a gain of 0.5 million barrels, while distillate stockpiles rose by 1.3 million barrels.
New York-traded oil futures are down nearly 30% since 2016 began.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery shed 20 cents, or 0.65%, to trade at $30.64 a barrel. On Wednesday, London-traded Brent prices rose 52 cents, or 1.72%.
Brent futures have lost approximately 19% since the start of the year.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share.
Oversupply issues will be exacerbated further as Iranian exports return to the global oil market.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $3.76, compared to a gap of $3.39 by close of trade on Wednesday.