U.S. Oil Futures Fall to 6-Year Low

Prices for benchmark U.S. crude declined on Tuesday to their lowest levels since early 2009 as output by the Organization of the Petroleum Exporting Countries jumped to near-record levels.

West Texas Intermediate dropped 4% to $43.08, its lowest price since March 2009. The price of global benchmark Brent crude declined 3% to $49.71.

Prices rebounded slightly on Wednesday morning as the Paris-based International Energy Agency predicted global demand for petroleum will rise this year by 1.6 million barrels per day up 200,000 bpd from its previous forecast and expand by 1.4 million bpd in 2016.

On Tuesday OPEC hiked its own estimate of this year's growth in global demand to nearly 1.4 million bpd, up 90,000 barrels from its previous forecast. The cartel says its 12 members pumped 31.5 million bpd of crude in July, about 1.5 million bpd above the group's self-imposed cap.

The IEA expects OPEC to maintain current production levels. It estimates output from other sources will drop from last year's record 2.4 million bpd to 1.1 million bpd in 2015 because of reduced production in Russia. The agency says U.S. output will grow by some 190,000 bpd in 2016. OPEC estimates America's production will jump by 320,000 bpd next year.