“Oil fell to the lowest level in seven weeks after a report showed rising U.S. stockpiles and the Federal Reserve Bank of Philadelphia President Charles Plosser said a new stimulus plan probably won’t boost economic growth.
Futures slid as much as 1.6 percent, temporarily falling below $90 a barrel for the first time since Aug. 3 on the New York Mercantile Exchange. The American Petroleum Institute said crude supplies increased 335,000 barrels, a third weekly gain, while Citigroup Inc. cut its global demand forecasts. Bond purchases announced by the Fed this month probably won’t spur expansion or hiring, Plosser said in a speech yesterday. Oil surged to $100.42 a barrel on Sept. 14, its highest this year, after the Federal Open Market Committee said it will undertake a third round of quantitative easing.
“The quantitative easing euphoria has eased,” Ole Hansen, senior manager of trading advisory at Saxo Bank A/S, said by phone from Copenhagen. “Renewed worries, especially in Spain, are putting the focus back onto global growth and the potential for subdued demand for oil.”
Crude for November delivery fell as much as $1.45 to $89.92 a barrel in electronic trading on theNew York Mercantile Exchange and was at $89.96 at 1:16 p.m. London time. Futures slid 56 cents to $91.37 yesterday, the lowest close since Aug. 2. They are down 8.2 percent this year.
Brent oil for November settlement dropped $1.87, or 1.7 percent, to $108.58 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade’s premium to West Texas Intermediate in New York was at $18.62, compared with a close of $19.08.”
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