Brent Drops Below $90; Worry Over Global Economy, Supply

Reuters

NEW YORK, Oct 9 (Reuters) - Brent broke below $90 a barrel on Thursday for the first time since the summer of 2012, joining a rout in U.S. crude and gasoline prices as sinking stock prices, Europe's worsening outlook and surging oil inventories hammered energy markets.

Brent tumbled more than 1 percent, extending a slump from June highs that has already caused bulls in the U.K.-traded crude a loss of some 20 percent.

U.S. West Texas Intermediate (WTI) crude hit an 22-month low and gasoline a near four-year bottom, both falling about 2 percent each.

Gary Ross, chief executive of PIRA Energy Group, said world oil prices are set to fall further, extending a months-long rout as Saudi Arabia is unlikely to make deep enough production cuts to erase a growing surplus of supply.

"Structurally, the market is oversupplied. Something has to give and we think it will be price," he said on the sidelines of PIRA's Annual Seminar, a closed-door event at which the New York City-based firm releases its oil and gas forecasts to over 1,000 clients, from big hedge fund managers to chief executives.

Concerns about world economies sent U.S. and other stock markets lower, reversing a rally from a day ago sparked by the Federal Reserve's caution about raising interest rates soon.

Data showed Germany, Europe's No. 1 economy, in August experienced its largest plunge in exports since the height of the financial crisis.


123

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Sr District Account Manager
Expertise: Sales
Location: New Orleans, LA
 
Technical Service Representative-Service Engineer
Expertise: Sales
Location: Borger, TX
 
Project Engineer/Project Manager
Expertise: Project Management
Location: Baton Rouge, 
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours