08 October 2014, News Wires – Brent crude futures fell to just above $91 per barrel on Wednesday, holding to a months-long tumble in prices as lower economic growth forecasts raised new concerns about global oil demand amid rising US inventory levels.
The International Monetary Fund, IMF, on Tuesday cut its global economic growth forecasts for the third time this year, warning of weaker growth in core eurozone countries, Japan and big emerging markets like Brazil.
While the IMF kept its growth outlook for China, the world’s second-biggest oil consumer, unchanged at 7.4% for this year, it saw a risk of a hard landing in the medium term due to concerns over excess industrial capacity and credit.
“Growth concerns are on traders’ minds, coupled with the glut in supply. The market is caught on a vortex of high supply and weak demand,” OptionsXpress market analyst Ben Le Brun told Reuters.
Brent for November delivery fell $1 to $91.11 by Wednesday morning after hitting $91.03 earlier in the session, its lowest point since June 2012.
Oil prices have trended lower on oversupply and weak demand since mid-June, when Brent hit a nine-month high of $115.71.
West Texas Intermediate for November delivery dropped 93 cents to $87.92 a barrel after falling to $87.77 earlier in the session, its lowest since April 2013.
