Oil Falls Below $40 a Barrel for First Time Since 2009
Oil Falls Below $40, Supply Glut Grows
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Oil plunged below $40 a barrel in New York for the first time in more than six years, extending the longest decline since 1986 on concern slower demand growth will prolong a global glut.
Prices have tumbled almost 35 percent since this year’s highest close in June as producers pump away even after an oversupply pushed prices into a bear market. West Texas Intermediate may drop to $32 on the persisting surplus, Citigroup Inc. said Wednesday. Meanwhile, concern that China’s economy will slow increases expectation that demand will wane.