Oil declined in New York, closing at the lowest level in more than two months, as U.S. crude stockpiles are estimated to have expanded for an eighth week.

West Texas Intermediate fell 2.6 percent as French jets bombed Islamic State targets in Syria for a second day. U.S. crude supplies probably rose by 2 million barrels last week, according to a Bloomberg survey before Energy Information Administration data Wednesday. Oil futures settled at the lowest level since August when prices tumbled to a six-year low. Both gasoline and diesel futures dropped to the lowest since 2009.

Oil has slumped 46 percent the past year amid speculation a global glut will persist as the Organization of Petroleum Exporting Countries continues to pump above its collective quota and Russian production has climbed to a post-Soviet high. French President Francois Hollande called on the U.S. and Russia to forge a new alliance to destroy Islamic State.

WTI for December delivery fell $1.07 to settle at $40.67 a barrel on the New York Mercantile Exchange. It was the lowest close since Aug. 26. The volume of all futures traded was 9.4 percent above the 100-day average at 3:08 p.m.

Brent for January settlement declined 99 cents, or 2.2 percent, to end the session at $43.57 a barrel on the London-based ICE Futures Europe exchange. It was the lowest settle since Aug. 26. The European benchmark crude closed at a $1.86 premium to WTI for January delivery.

Source: Bloomberg