Via the FT:
The euro’s tumble was the most eye-catching move in financial markets early on Tuesday, but it’s since been eclipsed by the slide in oil.
Brent crude fell 2.6 per cent to trade below $95 a barrel in late afternoon trading in London, taking oil’s drop to just over 8 per cent in September.
Although there was no obvious trigger for the further leg lower in oil, market watchers pointed to a report signalling a rise in Opec output in September, reports Anjli Raval, oil and gas correspondent.
Investors closing out positions at the end of the quarter and hedging activities by producing countries, namely Mexico, were noted as other potential reasons for the price falls.
A combination of oversupply in the North Sea and the Atlantic Basin has coincided with higher production in North America.
With emerging market economies no longer growing at the heady pace of recent years, both the International Energy Agency and Opec shaved their forecasts for oil demand next year.
Oil analysts at Commerzbank said:
There is a clear lack of any impetus to drive any price recovery.
While bad news for the world’s oil producers, the slide in oil prices will provide a welcome tailwind for US consumers.