LONDON/KUWAIT -LRB- Reuters -RRB- - The drop Movement.down.loss in oil prices to their lowest Position.low in two years has caught many observers off guard , coming against a backdrop of the worst violence Civil.unrest in Iraq this decade , heightened tensions Geopolitical.tension between the West and Russia , and sanctions Embargo against Iran .

Oil fell Movement.down.loss 5 percent to its lowest Position.low in nearly six years on Monday , extending the second-deepest rout on record , after Goldman Sachs warned that prices would fall Movement.down.loss further and Gulf oil producers showed no sign of cutting Cause.movement.down.loss output .

The numbers , which are the lowest Position.low since May , are also down Movement.down.loss from July export figures of 389,000 bpd .

Oil fell Movement.down.loss 5 percent to its lowest Position.low in nearly six years on Monday , extending the second-deepest rout on record .

Global benchmark Brent crude for November fell Movement.down.loss 5 percent last week , hitting its lowest Position.low in over two years .

Oil prices climbed Movement.up.gain more than 2 % on Wednesday as China reported its lowest Position.low daily number of new coronavirus cases since late January , stoking investor hopes that fuel demand in the world 's second-largest oil consumer may begin to recover Grow.strong from the epidemic .

September Brent crude was down Movement.down.loss $ 1.46 at $ 103.22 per barrel at 1:32 p.m. , after falling Movement.down.loss to $ 102.65 , the lowest Position.low price since July 1 , 2013 .

Meanwhile , data on Wednesday showed that activity in the U.S. services sector declined Movement.down.loss unexpectedly in July , falling Movement.down.loss to the lowest Position.low level since February 2010 , while new factory orders also fell Movement.down.loss in June .

According to data through Tuesday , the growth rate of new coronavirus cases in China has slowed Slow.weak to the lowest Position.low since Jan. 30 .

The drop Movement.down.loss in oil prices to their lowest Position.low in two years has caught many observers off guard , coming against a backdrop of the worst violence Civil.unrest in Iraq this decade , heightened tensions Geopolitical.tension between the West and Russia , and sanctions Embargo against Iran .

Oil prices were also supported by U.S. Labor Department unemployment data , which suggested the economic recovery Grow.strong remained on track with initial weekly jobless claims at their lowest Position.low since February 2006 .

In May the price of oil fell Movement.down.loss to its lowest Position.low level since 1975-76 .

The nation 's production has been squeezed Cause.movement.down.loss to the lowest Position.low since the 1980s by American sanctions Embargo , and may decline Movement.down.loss further as the measures take full effect .

Brent crude oil dipped Movement.down.loss below $ 88 a barrel on Monday , its lowest Position.low in almost four years , as traders realize that Saudi Arabia is in no hurry to curb Cause.movement.down.loss the emerging oil glut Oversupply .

Asia 's diesel demand is expected to grow Grow.strong this year at the second lowest Position.low rate since the 1998 financial crisis Crisis as slowing Slow.weak economies squeeze Cause.movement.down.loss consumption and help build a surplus Oversupply for which there are few markets .

After the meeting , world petroleum prices fell Movement.down.loss well below the $ 18 per barrel reference price agreed at the November meeting , even though buyers ' stocks were at their lowest Position.low levels since 1974 .

The demand concerns Negative_sentiment from the outbreak pushed Brent and WTI to their lowest Position.low in 13 months on Monday .

Oil fell Movement.down.loss 5 percent to its lowest Position.low in nearly six years on Monday , extending the second-deepest rout on record , after Goldman Sachs warned that prices would fall Movement.down.loss further and Gulf oil producers showed no sign of cutting Cause.movement.down.loss output .

That followed news that India , the world 's fastest-growing major economy for the last three years , registered its lowest Position.low annual growth since 2012 in the three months to June .