Oil price dips below $43 US on reports of growing crude stockpiles

Oil prices took another dive on Wednesday, moving below $43 US a barrel after reports that crude oil stockpiles in the U.S. were increasing.

They also were pushed lower by data showing China's industrial output grew by 6.6 per cent, the weakest gain in eight months. There is global concern about slowing demand for crude in the world's second largest economy.

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West Texas Intermediate futures closed down 2.6 per cent or $1.16 to $43. 05US a barrel after falling as low as $42.65 in earlier trading. Brent, the international oil contract, was down 3.2per cent to $45.92 US, while Western Canada Select slipped to $28.28US.

Official government dataon the stockpiles won't be released until Thursday because of the Veterans' Day holiday, but analysts forecast supplies at Cushing, Indiana, will rise by 1.3 million barrels.

Industry group American Petroleum Institute forecast overall U.S. crude stocks would rise by 6.3 million barrels in the week to Nov. 6 to reach 486.1 million barrels.

The oversupply of oil worldwide continues to weigh on crude prices, while OPEC seems determined to maintain its current high output in its December meeting.

Yesterday, the International Energy Agency said it was unlikely oil would rise to the $80 a barrel level before 2020.