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