Brent crude dropped to the lowest level in more than two years amid signs that global supplies are outstripping demand. West Texas Intermediate rebounded after falling below $90 for the first time in 17 months.
The European benchmark crude has fallen 19 percent from its peak in June. WTI slid as much as 2.8 percent in New York before recovering on speculation prices fell too far too fast. The market retreated yesterday after Saudi Arabia, the world’s largest oil exporter, cut its official selling price for crude to Asia to the lowest since 2008.
“It’s been slaughter the last few days,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. “Supply has been outpacing demand and that doesn’t appear to be changing anytime soon. We finally broke through $90 after yesterday’s move by the Saudis showed that they’re fighting for market share.”
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