Oil falls nearly 2% as global stock markets slide

Oil prices continued to extend losses on Thursday, in line with the drop in global stock markets and more-than-expected rises in US crude inventories.

Global benchmark Brent crude fell $1.59, or 1.9 percent, to $81.50/bbl, while WTI crude slipped $1.25, or 1.7 percent, to $71.92/bbl.

Japan's Nikkei 225 index was down nearly 4 percent early Thursday. Major world markets declined on Wednesday, with the S&P500 index sinking 3 percent, its biggest one-day decline since February.

Meanwhile, the American Petroleum Institute said US crude stockpiles rose more than expected last week, while gasoline inventories increased.

Crude inventories soared by 9.7 million barrels in the week to Oct. 5 to 410.7 million, compared with market expectations for an increase of 2.6 million barrels, it said.