London, AFP, 13 November 2015 – Oil plunged Friday to two-month lows after the International Energy Agency said commercial crude stockpiles in developed nations had hit a record high 3.0 billion barrels.
The news obtained from the IEA’s latest report, renewed concerns over a global supply glut that had sparked the recent oil price collapse.
In Friday afternoon deals, London Brent crude struck $43.60 per barrel and New York crude touched $40.45, levels last seen in late August.
“The market is being overwhelmed by rising supply,” said Michael Corcelli, chief investment officer of hedge fund Alexander Alternative Capital LLC in Miami.
“We could test the six-year lows reached in August at any moment. We will either break through or put in a bottom,” he told Bloomberg News.
At about 1600 GMT, U.S. benchmark West Texas Intermediate for delivery in December was down $1.17 at $40.58 a barrel.
Brent North Sea crude for December slid 41 cents to stand at $43.65 a barrel in London late afternoon deals compared with Thursday’s close.