Oil at lowest level this year

Oil opened this morning at its lowest level this year, trading just below $58 per barrel.

The move below $60 has been achieved as confidence grows that US stock data will prove bearish for the market.

Given forecasts of a mild winter in North America and Europe, upward impetus to price has been lost at the moment.

Paul Harris of Bank of Ireland Global Markets said: "The question now is whether oil falls significantly further and, with the Iranian situation and OPEC president Nigeria urging supply cuts still affecting fundamentals adversely, the answer has to be that a full-blown bear run does not look imminent at this time."

The fall in oil has been mirrored across the commodity suite with gold, platinum and copper all posting significant falls over the past few trading sessions.

One key driver of this dip has been US economic performance which is perceived to have slowed recently.

The release of EIA figures this afternoon will lend further near-term direction to the oil market - if the numbers are as good as expected it remains to be seen whether the bearish sentiment extends further.