Oil prices have dropped to a three-month low due to signals of increased supply.

 Oil prices have dropped to a three-month low due to signals of increased supply

Concerns about diminishing demand in the two largest oil-consuming nations in the world, China and the United States, caused oil prices to plummet to their lowest point in more than three months on Tuesday. Brent crude futures increased marginally by 4 cents to $81.65 a barrel by 0333 GMT, while U.S. crude futures fell 14 cents to $77.24 a barrel.

Analysts from ING bank Warren Patterson and Ewa Manthey wrote in a note to customers that "the market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance." They were talking about the tight oil supply situation loosening up. According to market sources late on Tuesday, US crude oil stocks increased by about 12 million barrels last week, citing data from the American Petroleum Institute. US Energy Information Administration announced on Tuesday that it will postpone the release of weekly inventory data until the week of November 13. The EIA now projects that total petroleum consumption in the US will decline by 300,000 bpd this year, reversing its earlier forecast of a 100,000 bpd increase. Crude oil production in the US will rise by slightly less than previously expected while demand will fall.