Oil Falls As Bearish Trend Continues, Saudi Lowers Prices
NEW YORK, Oct 1 (Reuters) - Oil prices fell toward $94 a barrel on Wednesday, continuing a three-month losing stretch as weak economic signals from China and Europe and ample global supply continued to weigh.
Brent and U.S. crude found early support from a U.S. government report showing a surprise drop in U.S. crude stockpiles and as Chinese factory data offered signs of hope for the slowing economy.
But gains were erased and bearish sentiment returned after Saudi Arabia announced a bigger-than-expected cut in its official oil sales price (OSPs) to Asia in November, the clearest sign yet that the world's largest exporter is trying to compete for crude market share and keep oil markets well supplied.
"Prices came off, quite literally, after the OSPs came out," said Amrita Sen, chief oil analyst at Energy Aspects in London.
Wednesday's fall added to last quarter's losses that saw a 16 percent drop in Brent and a 12 percent drop in U.S. crude since June, the biggest quarterly rout in two years.
Brent crude settled 51 cents lower at $94.16 a barrel, its weakest settlement since June 2012, after earlier rising up to $96.23.
U.S. crude, which on Tuesday clocked its biggest one-day fall since November 2012, ended 43 cents higher at $90.73. Earlier in the day, U.S. crude rose to $92.96.
View Full Article
WHAT DO YOU THINK?
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.