Oil Plummets to June Lows as Algorithms Exacerbate Dour Outlook
- Firms see US crude exports near record 6 million barrels a day
- Russia says OPEC+ cuts can go further, in echo of Saudi stance
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Oil fell to the lowest since June as momentum traders and lower market volumes worsened a plunge that has been driven by concerns the market is oversupplied.
Crude has plummeted in recent weeks amid signs of swelling global supplies, including estimates from ship-tracking firms that American crude exports are nearing a record 6 million barrels a day. US benchmark West Texas Intermediate slid 4.1% to below $70 a barrel, while global benchmark Brent retreated 3.8%, slipping below $75. The decline was accelerated by Brent’s dwindling open interest and trend-following algorithms that have been shorting crude.