NEW YORK: Brent crude fell below US$97 a barrel yesterday to its lowest in more than two years as lacklustre economic data from China damped prospects for oil demand at a time of abundant supply, while expectations the Federal Reserve will provide new details this week about its plans to raise interest rates lifted the dollar.
The Brent contract for October delivery, which expired yesterday, fell as low as US$96.21 a barrel, its weakest since July 2012. The contract later pared most losses to trade around US$96.94, down 17 cents.
“Struggling global economic growth has resulted in falling growth in global oil demand,” PVM oil analyst Tamas Varga said, adding that concerns over conflict in the Middle East, North Africa and Russia had not translated into supply disruptions. Reuters