Brent crude declined to the lowest level in more than two years on concern slower economic growth in China will reduce demand. West Texas Intermediate also fell.
Industrial output in the world’s second-biggest oil consumer expanded at the weakest pace since the global financial crisis, China’s National Bureau of Statistics said Sept. 13. The International Energy Agency last week cut its global oil demand forecast because of weaker growth in China and Europe. Crude pared losses as the dollar weakened from a 14-month high.
“The market is factoring in slowing economic growth in China and Europe,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We seem to have concerns about the economic conditions and the idea that we have more than ample supply.”
Brent for October settlement, which expires today, fell 41 cents, or 0.4 percent, to $96.70 a barrel at 9:25 a.m. New York time on the London-based ICE Futures Europe exchange. It earlier touched $96.21 a barrel, the lowest since July 2, 2012. The more active November contract slid 29 cents to $97.67. The volume of all futures traded was 17 percent below the 100-day average.
WTI for October delivery dropped 34 cents, or 0.4 percent, to $91.93 a barrel on the New York Mercantile Exchange. Volume was 27 percent higher than the 100-day average. Brent was at a premium of $4.77 to WTI, having settled at $4.84 on Sept. 12.