West TX Oil Drops to Near $80 as Gloom Spreads

Oil prices resumed their slump on Wednesday after a brief bounce from four-year lows failed to gain traction, with U.S. crude hitting a low of $80.01 a barrel as equity markets tumble and economic gloom spreads.

A sharp fall in the U.S. dollar lent modest support to oil prices early in the day, but the mood turned bearish again by mid-afternoon as traders saw little end in sight for oil’s deepest rout in three years. European benchmark Brent has fallen 28 percent since June as OPEC’s most influential members see little need to shore up markets by cutting output.

Brent crude for November delivery, which expires on Thursday, fell $1.03 to $84.01 a barrel by 1:45 p.m. EDT (1545 GMT), after trading earlier as low as $83.37 a barrel, its weakest since 2010. It fell nearly $4 on Tuesday, the biggest drop in three years.

CNBC

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