Investing.com - Oil prices extended losses on Wednesday, with crude falling below the $56 per barrel level as Saudi Arabian production came back online and concerns over the demand outlook weighed.
Crude oil WTI futures dropped to $55.82 by 9:41 AM ET (1:42 GMT), down $1.45, while Brent was down $1.57 to $61.54 a barrel.
Prices have been hit by reports that Saudi Arabia is recovering more quickly than expected from attacks on its oil infrastructure.
"Simply put, the geopolitical risk premium has all but vanished and bullish catalysts suddenly appear in short in supply across the oil market," analysts at PVM said in a research note.
A harsher tone on trade by U.S. President Donald Trump in comments in the UN on Tuesday reignited concerns over the outlook for global growth.
Prices were also hit after the American Petroleum Institute said U.S. crude inventories rose by a larger than forecast 1.4 million barrels last week.
Inventory data from the U.S. Energy Information Administration will be released later in the day.