US oil prices fall to over two-month lows on rising inventories

Prices fell over 10% since the beginning of November

US crude oil dipped further in early trading on Friday to over two-month lows as prices fall over 10% since the beginning of November.

Benchmark US crude futures were at $41.70 a barrel at 0021 GMT, down five cents from Thursday when prices tumbled 4% on the back of high rising US stocks.

"Crude prices dropped to the lowest level in more than two months after US oil stockpiles climbed for a seventh week," ANZ bank said on Friday referring to official US data that saw crude inventories rise by 4.2 million barrels last week against a market expectation of just a 1.3 million barrel gain.

ANZ also said that big price rises this year were unlikely: "A year end recovery in commodity prices remains unlikely with a stronger US dollar and EM (emerging market) growth concerns."

Oil markets have been dogged by oversupply, which analysts estimate to be between 0.7 and 2.5 million barrels of oil being produced everyday without a buyer, and which has resulted in prices falling by almost two-thirds since June 2014.