Oil prices shed more than $1 on Wednesday to their lowest in more than three months on concern over fading demand in the United States and China.

The Brent crude futures declines $1.11 to $80.50 a barrel by 1311 GMT and U.S. crude lost $1.20 to $76.17, and both the benchmarks are showing their lowest levels since late July.

While referring to tight crude supply conditions, the ING analysts Warren Patterson and Ewa Manthey said in a note to clients,

“The market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance,”

In this year, Crude oil production in United States will rise by slightly less than previously expected, but demand will slump, the U.S. Energy Information Administration (EIA) said on Tuesday.

The U.S. Energy Information Administration (EIA) now expects total U.S. petroleum consumption to decline by 300,000 barrels per day (bpd) this year, reversing its previous forecast of a 100,000 bpd increase.