Crude Oil dropped below $79 a barrel as the Dollar strengthened and an industry report showed an increase in U.S crude stockpiles. The U.S is the world's biggest energy consumer. Crude oil for December delivery dropped as much as 58 cents, or 0.7%, to $78.54 a barrel on the New York Mercantile Exchange.
Oil fell for a second day as U.S. equities declined and the Dollar rose from a 14-month low against the EUR. Furthermore, the American Petroleum Institute reported that crude supplies rose 3.85 million barrels.
An Energy Department report due today at 14:30 GMT is expected to show that U.S. inventories of Crude Oil rose 1.5 million barrels last week, likely putting further pressure on Oil Prices.