Brent oil price drops to lowest since 2010

PanARMENIAN.Net - Crude-oil futures fell sharply after breaching key technical support levels in Asian trade Friday, Oct 10, with the Brent oil benchmark dropping to its lowest price since 2010, the Wall Street Journal reports.

Global oil prices have been falling on a combination of bearish factors including high U.S. oil production, a surge in Libyan oil output, a seasonal peak in refinery maintenance and weak demand from Asia and Europe.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $83.80 a barrel early in the European day, down $1.97 in the Globex electronic session. November Brent crude on London’s ICE Futures exchange fell $1.75 to $88.30 a barrel, the Journal says.

Nymex WTI crude was trading at its lowest since June 2012 and Brent crude fell to its lowest level since December 2010.

The U.S. oil benchmark has fallen below the two-year low of $84.06 seen on Thursday. A drop below the $84.05 support exposes the downside to $82.10 and then to the psychological $80 line, according to Dow Jones technical analysis. Prices typically move within a range where the upper and lower price limits form so-called support levels.

A recent surge in the U.S. dollar, which pressured commodities markets across the board, have also weighed on oil prices. Investors are now looking to the November meeting of the Organization of the Petroleum Exporting Countries for potential supply cuts to balance the market.