West Texas Intermediate crude slid the most in 22 months and Brent reached a two-year low as ample supply shielded the market from the risk of disruption due to the conflict in the Middle East.
Futures slumped 3.6 percent in New York and 2.6 percent in London. OPEC oil production increased in September, led by a rebound in Libyan output to the highest level in more than a year, a Bloomberg survey showed today. Both benchmarks capped their biggest quarterly declines in more than two years. WTI may approach $90.63 after breaking below $91.50, according to Bloomberg First Word oil strategist Eric D. Pradas.
“We are going to continue to see lower prices as we go forward,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “Fundamentally we are just very well supplied. The dollar continues to get stronger and it’s adding pressure to oil.”
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