Brent Oil Around $89 as Iraq Joins with Saudi Arabia in Cuts

Iraq joined Saudi Arabia and Iran in cutting crude selling prices as Brent futures extended their slump to the lowest in almost four years. West Texas Intermediate fell after its biggest weekly loss since January.

Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, trimmed its price differentials for Basrah Light supplies to Asia and Europe for November, the country’s state Oil Marketing Co. said today. Futures slid as much as 3.6 percent in London to the lowest intraday level since December 2010, and WTI lost 1.8 percent after tumbling into a bear market on Oct. 9.

The world’s two most-traded oil futures are collapsing as demand growth slows and output expands in the U.S., Russia and other nations. OPEC’s biggest producers are responding by cutting prices, sparking speculation they are ready to compete for market share. Iran last week said it will sell oil to Asia in November at the biggest discount in almost six years, matching cuts by Saudi Arabia.

Bloomberg

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