WTI crude Oil fell below $90 for the first time in 17 months on speculation rising U.S. production will be more than enough to meet demand.
WTI for November delivery was down $1 to $89.73 a barrel at 8:37 a.m. London time on the New York Mercantile Exchange, trading below $90 for the first time since April 24, 2013. Prices are down 8.7 percent this year. They declined 13 percent in the three months to Sept. 30, the worst quarterly performance in more than two years.
Futures dropped as much as 1.2 percent to $89.67 a barrel in New York. U.S. crude output will rise 14 percent to 8.53 million barrels a day this year and reach 9.53 million in 2015, the most since 1970, the Energy Information Administration forecast Sept. 9. Consumption this year will fall from 2013, the EIA said.
Brent for November settlement slid 83 cents to $93.33 a barrel on the London-based ICE Futures Europe exchange. Prices decreased 16 percent last quarter.
Saudi Aramco yesterday dropped its official selling price for crude to Asia to the lowest level since 2008. It reduced the price for Arab Light to Asia by $1 a barrel to a discount of $1.05 to the average of Oman and Dubai crude.
U.S. crude production rose to 8.87 million barrels a day in the week ended Sept. 19, the highest level since 1986, according to EIA estimates.
The EIA reduced its price forecasts for WTI in the monthly report. WTI will average $98.28 a barrel this year, down from last month’s projection of $100.45.
The share of total U.S. petroleum and other liquids consumption met by net imports fell to 32 percent in 2013 from 60 percent in 2005, according to the EIA. The rate will decline to 21 percent in 2015, which would be the lowest level since 1968.
Prices also slipped as output by the Organization of Petroleum Exporting Countries increased in September, led by a rebound in Libyan output to the highest level in more than a year.
Production by the 12-member OPEC rose by 413,000 barrels a day to 30.935 million, the survey of oil companies, producers and analysts showed.