Brent Oil Around $86 on Supply Glut

Brent crude extended its biggest one-day collapse in three years amid speculation OPEC will refrain from eliminating a glut while demand growth slows to the lowest since 2009. West Texas Intermediate approached $80 a barrel.

Brent fell as much as 2 percent to $83.37 a barrel on the ICE Futures Europe exchange in London, the lowest since November 2010. Yesterday it plunged 4.3 percent, the biggest one-day drop since September 2011, after the Paris-based International Energy Agency cut its 2014 demand forecast. Iran, an OPEC member, isn’t concerned about the slide in prices, according to its deputy oil minister.

“The market is currently in a state of panic as no one is prepared to put a hand under it,” Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said by e-mail. “OPEC’s lack of reaction to the latest sell-off could indicate they want to share the production cuts with the U.S.”

Bloomberg

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