Oil extends losses as the markets fall and US inventories climb
Brent and US crude drop by more than $1 a barrel as Hurricane Michael dodges US production sites
London — Oil prices slumped to two-week lows on Thursday as global stock markets fell, with investor sentiment made more bearish by an industry report showing US crude inventories rising more than expected. Brent crude fell $1.74 a barrel to a low of $81.35, its lowest since September 27, before recovering a little to trade at about $81.70 by 8.50am GMT. Brent lost 2.2% on Wednesday. On October 3, it hit a four-year high of $86.74. US light crude dropped $1.37 to $71.80 but then recovered to around $72.05. The contract lost 2.4% in the previous session. “The up-trend is over for the moment, and a new direction is settling in,” said Robin Bieber, technical chart analyst at London brokerage PVM Oil. “The market looks like heading lower, with valid targets south.” Share markets in Asia plunged to a 19-month low on Thursday after Wall Street’s worst losses in eight months led to broader risk aversion, a rise in market volatility gauges and concerns about overvalued stock markets in an e...
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