LONDON: Oil on Thursday sank more than $1 a barrel to a four-year low below $83 a barrel as concerns over the world economy stretched a four-month rout.
Global benchmark Brent has fallen more than 28 percent since June due to slow demand and more supply. Losses have increased in October on signs that the Organization of the Petroleum Exporting Countries has no plan to cut supply.
Brent crude for November delivery had dropped to $82.72 a barrel to the lowest since November 2010 and was down 62 cents at $83.16 a barrel by 0914 GMT. U.S. crude fell $1.01 to $80.77 a barrel.
Assets which depend on economic growth, such as shares and oil, have been hit by a raft of weak indicators from Europe at a time when other big economies, including China, Japan and Brazil face their own hardships. At the same time, the U.S. Federal Reserve is set to wind down later this month the asset purchase programme that has boosted markets over the past two years.
Brent has fallen from a high of $115.71 reached in June – a level reached on concern that Islamic State’s insurgency into Iraq would disrupt its supplies, and well below the $100-mark until recently seen as a level OPEC members would defend.
Reports of ample supplies in the United States added downward pressure on prices. According to industry group the American Petroleum Institute, U.S. crude inventories rose 10.2 million barrels to 370.7 million barrels..
