WTI Oil Plunges Below $90 on Supply Glut; Brent Declines
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West Texas Intermediate oil fell below $90 for the first time in 17 months amid signs that supplies from Russia, Saudi Arabia and the U.S. are outstripping demand. Brent, Europe’s benchmark, headed for a bear market.
WTI futures dropped as much as 2.8 percent to $88.18 a barrel in New York, bringing the decline to 10 percent this year. Brent has fallen 20 percent from its peak in June. Losses in WTI below $90 would slow U.S. production, Goldman Sachs Group Inc. said yesterday. The nation’s output will rise next year to the highest since 1970, according to the Energy Information Administration.