Oil was on the slide again and threatening to wipe out all of the gains seen in the past weeks.
A rise in the dollar and the sharp rise in the amount of crude in storage were the reasons said traders.
US stockpiles rose by 9.4mln barrels sending the price of Brent down US$40.24 per barrel and light West Texas crude to US$39.27.
Traders said while the rise in stocks was not surprising given the seasonal pattern of US petrol demand it was enough to unsettle a market already jittery after renewed talk of rising interest rates.
Good news for London duo
Among the juniors, there was some good news for a couple of firms listed in London.
LGO Energy PLC (LON:LGO) expects to earn 10% more per barrel on the oil it produces in Trinidad after lower royalty rates were introduced by state oil company Petrotrin.
From now on, and on oil sold at prices under US$50 per barrel, the royalty rate on most barrels is being cut by 40% to below 10%.
Elsewhere, the 2016 work programme for Shoats Creek, in which Northcote Energy Ltd (LON:NCT) and Red Rock Resources PLC (LON:RRR) have interests, has been finalised.
The agreed work programme on the field, which is located in Louisiana, is focused on growing production and adding high-grade potential locations.
Shares in both were in favour with Northcote climbing by 3% to 0.049p while LGO rose 8% to 0.28p