Brent crude plunges 10 per cent to two-month low below US$100
Brent crude oil fell as much as 10 per cent to a two-month low below US$100 a barrel on expectations the US will exit the Iran conflict. US crude inventories fell unexpectedly while refined product supply hit a one-year high.
International oil prices tumbled on Thursday as investors dumped crude amid rising expectations that the United States will withdraw from the conflict with Iran.
Brent crude fell below US$100 a barrel for the first time in nearly a month, with the January contract sliding as much as 10 per cent to a two-month low of US$93.22. It settled at US$94.62, down about 8.7 per cent.
US West Texas Intermediate crude also touched a roughly one-month low, with the December contract falling to US$87.13, a drop of 9.3 per cent. It closed at US$88.12, down about 8.3 per cent.
According to data from the US Energy Information Administration (EIA), US crude inventories fell by about 870,000 barrels last week, defying market expectations of an increase of about 880,000 barrels. Gasoline and distillate fuel stockpiles also declined, while the supply of refined products—a key demand indicator—rose to a one-year high.