Brent crude futures slumped to a 16-month low and West Texas Intermediate dropped to the lowest level since January on concern slower manufacturing from Europe to China will curb global oil demand.
WTI dropped for the first time in five days as the end of the peak driving season heralded the start of refinery maintenance. Gasoline futures reached the lowest level for a front-month contract since November. Crude prices also retreated after a dollar gauge rallied to the highest level since January.
“Concern about global economic conditions, primarily in Europe and China, is pushing oil lower,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The weak gasoline prices seem to be weighing on the whole complex. WTI is trading in the $92 to $96 range.”