On Thursday crude oil futures fell steeply, as concerns over abundant global supplies and worries over weakening demand dragged prices lower.
Nymex crude oil for November delivery fell to a session low of $88.20 a barrel, a level not seen since April 2013. Prices recovered to last trade at $88.29 a barrel during European morning hours, down $2.44 from a closing price of $90.73 on Wednesday.
Futures were likely to find support at $87.68 a barrel, the low from April 22, 2013, and resistance at $92.96 a barrel, the high from October 1.
November Brent oil lost $2.46 to hit $91.70 a barrel. London-traded Brent prices hit $91.60 earlier in the session, the lowest since June 2012.
Sentiment for growth-linked assets weakened after a number of frustrating manufacturing reports on Wednesday showed that factory activity in the U.S. slowed more than expected last month, Germany’s manufacturing sector slid into contraction territory for the first time in 14 months, while activity in China stalled.
Concerns over unrest in Hong Kong and a confirmed Ebola diagnosis in the U.S. also added to the risk-off mood.
Investors now await the European Central Bank's policy meeting later in the day for further details on the central bank's plan to purchase asset-backed securities, first announced in September. Market players also expect the release of the latest U.S. nonfarm payrolls report on Friday, for further indications on the strength of the recovery in the labor market.
Market analysts anticipate the data to show that the U.S. economy added 215,000 jobs in September, after a gain of 142,000 in August.
