Brent oil dropped to the lowest level in almost 17 months and West Texas Intermediate fell amid speculation that slowing economic growth will add to an excess of supply.
Brent traded below $100 a barrel for a third day. OPEC cut forecasts for the amount of crude it will need to pump by the most in three years as surging U.S. output reduces reliance on the group’s barrels. Crude prices are poised to drop next year as American production climbs to a 45-year high, the Energy Information Administration said yesterday. Government data today is forecast to show that U.S. crude supplies declined last week.
“Oil is falling because of fears that global economic growth is slowing, which will translate into weaker demand” Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut, said by phone. “Brent is already at a 16-month low and I think the vast majority of the correction has already taken place. The market’s looking for a bottom.”
Brent for October settlement fell 41 cents, or 0.4 percent, to $98.75 a barrel on the London-based ICE Futures Europe exchange at 9:13 a.m. in New York. Futures touched $98.71, the lowest level since April 18, 2013. The volume of all futures traded was 44 percent above the 100-day average for the time of day.