Oil prices fell to two-month lows on Friday after data this week indicated US production hit record levels, raising concerns the market will become oversupplied.
Brent crude, the international benchmark, fell 0.62% to $64.41 a barrel on Friday. Just 15 days ago, Brent hit a three-year high, rising of $71.28 a barrel.
Similarly, Nymex West Texas Intermediate (WTI) fell 0.88% to $60.61 a barrel on Friday, having hit a three-year high of $66.66 a barrrel little more than two weeks ago.
Analysts said that the current bout of risk aversion in equity markets had prompted a withdrawal of speculative long positions - or investors backing a rise in oil prices.
Warren Patterson, commodities strategist at ING said: "Friday's Commitment of Traders report is likely to show a fairly large reduction in the speculative net longs.
"Apart from the fact that the market is trading 3% lower over the reporting week, aggregate open interest has also fallen by 5% to 2,396,395 lots – suggesting the liquidation of longs."