LONDON, Oct 8: Oil prices sank on Wednesday as rising American crude reserves signalled weaker demand in the United States, the world’s biggest consumer of energy.

The market was also dampened by falling equities, which sparked fresh fears about global energy demand, despite a coordinated move by six of the world’s major central banks to slash their interest rates.

New York’s main contract, light sweet crude for delivery in Nov, dived $3.06 to $87 a barrel.

London’s Brent North Sea crude for November fell $2.80 to $81.86 a barrel, coming off earlier lows after the central banks’ joint effort.

The US Department of Energy said on Wednesday that US crude oil inventories rose by 8.1 million barrels in the week ending October 3, which was way ahead of market expectations for a 2.3-million-barrel gain.

New York crude had touched $86.05 and London Brent hit $81 — which were the lowest points since October 15, 2007.—AFP