The oil price dropped to two-week lows on Thursday October 11th as losses continued from previous trading amid a rout in global stock markets, with prices also hit by an industry report revealing US crude inventories have climbed more than expected.
Supply concerns also eased as Hurricane Michael appears to have spared oil assets from significant damage as it smashed into Florida, despite it causing at least one death and widespread destruction.
According to Reuters, Brent crude futures were down $1.15, or 1.4%, at $81.94 a barrel by 0624 GMT. They earlier touched their lowest since September 27th at $81.35, after closing 2.2% lower on Wednesday.
US West Texas Intermediate (WTI) crude futures were down by 91 cents, or 1.2%, at $72.26, having also decreased to their lowest since September 27th. They slumped 2.4% in the previous session.
Asian share markets sank in a sea of red on Thursday after Wall Street suffered its worst drubbing in eight months, a conflagration of wealth that could threaten business confidence and investment across the globe.
“The clear risk-off mode that we are seeing across all markets is also hitting oil and those previous supply concerns have simply evaporated,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Volumes for Brent are four times the average for the Asian time zone, while WTI contracts were about 75% above typical turnover, McCarthy noted.