Brent Fell fifth time in six days on concern economyic will reduce demand. WTI fell before inventories data.
The International Monetary Fund cut its outlook for global growth in 2015 in a report today. German industrial production fell more than economists forecast in August in the latest sign that the outlook for Europe’s largest economy is deteriorating. U.S. crude inventories expanded by 2 million barrels last week, a Bloomberg News survey showed before government data tomorrow.
Brent for November settlement declined 94 cents, or 1 percent, to $91.85 a barrel at 9:43 a.m. New York time on the London-based ICE Futures Europe exchange. The volume of all futures traded was about 16 percent above the 100-day average. Brent dropped to $91.25 yesterday, the lowest since June 2012.
WTI for November delivery fell 74 cents, or 0.8 percent, to $89.60 a barrel on the New York Mercantile Exchange. Volume was 8 percent above the 100-day average. Brent traded at a $2.26 premium to WTI on ICE. WTI slid to $88.18 on Oct. 2, the lowest since April 2013.
Front-month Brent futures’ 14-day relative strength index is at about 25 today. That’s a sixth day below 30, signaling the market is oversold and further losses probably can’t be sustained.