Brent Oil Drops to 103 as Global Supplies Climb

Brent crude fell to the lowest in 13 months as the International Energy Agency said a supply glut was shielding the market against threats in the Middle East. West Texas Intermediate also declined.

Brent dropped the most in four weeks. The IEA cut projections for demand growth this year and next and estimated that output from the Organization of Petroleum Exporting Countries rose to a five-month high. Libya prepared to export crude from a key port for the first time in a year.

“The IEA report knocked the market pretty hard today,” said Bill Baruch, a senior market strategist at Iitrader.com in Chicago. “Demand worry has really been moving the market. There is really no reason for WTI to push above $100 unless there is a major supply disruption.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.