Friday, 17 October 2014 00:00
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Reuters: Oil fell more than $ 1 a barrel on Thursday, with Brent crude hitting a fresh four-year low at below $ 83, as growing concerns over the global economy stretched a four-month rout.
Brent has lost more than 28% since June amid slow demand and abundant supply, with losses accelerating in recent weeks on signals that the Organization of the Petroleum Exporting Countries will not slash output to rescue prices.
Economic concerns accelerated losses in oil prices which have been hit hard by a global supply glut.
Brent crude for November delivery had dropped to $ 82.72 a barrel, the lowest since November 2010. The contract, which expires on Thursday, was down 53 cents at $ 83.25 a barrel by 0649 GMT.
US crude fell 99 cents to $ 80.79 a barrel. It hit a low at $ 80.01 on Wednesday, the weakest since June 2012.
The glut in the Atlantic Basin has helped fuel the collapse in oil prices, said Mark Keenan, head of commodities research in Asia for Societe Generale in Singapore.
“That’s been well documented and well understood but it nevertheless is still a strong issue,” he said. “You’ve got concerns about global growth, specifically in Europe and China as well.”
Global economic worries deepened this week after China’s consumer inflation fell to near five-year lows and US producer prices declined for the first time in more than a year, sparking a sell-off in risk assets.
The International Energy Agency this week cut its oil demand growth forecast for 2015 as global economies remain weak, with chief analyst Antoine Halff saying some OPEC members might prefer to keep selling at lower prices than lose their market.
Venezuela is calling for an emergency meeting of OPEC – ahead of its next scheduled gathering on Nov. 27 – to halt the slide in oil prices.
“Concerns over weak demand continue to pervade, with weakness likely to persist until signs that the supply side is reacting,” ANZ analysts said in a note.
US crude inventories rose 10.2 million barrels in the week to 10 October to 370.7 million barrels, data from industry group the American Petroleum Institute showed on Wednesday. (API/S).
This was far higher than analysts’ expectations for an increase of 2.8 million barrels.
