Brent oil tumbled to the lowest level in almost four years and West Texas Intermediate slipped the most since 2012 after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009.
Futures dropped 4.3 percent to $85.04 a barrel in London and 4.6 percent to $81.84 in New York. Oil consumption will rise by about 650,000 barrels a day this year, 250,000 fewer than the prior estimate, the Paris-based agency said in a monthly report. U.S. crude supplies probably grew by 2.5 million barrels last week, according to a Bloomberg survey of analysts before a report from the Energy Information Administration on Oct. 16.
Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the most in almost 30 years and global demand weakens. The biggest producers in the Organization of Petroleum Exporting Countries are responding by cutting prices, sparking speculation that they will compete for market share rather than trim output. Saudi Arabia won’t alter its supplies much between now and the end of the year, a person familiar with its oil policy said Oct. 3.
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