(Bloomberg) by Moming Zhou and Mark Shenk – Oil plunged below $40 a barrel in New York for the first time in more than six years on signs the glut of crude will be prolonged. Prices have tumbled almost 35 percent since this year’s peak in June as producers maintain output even after an oversupply pushed prices into a bear market. WTI may drop to $32 on the persisting global surplus, Citigroup Inc. said in a report Aug. 19. Concerns that China’s economic growth will reduce demand also weighed on futures. Brent also fell to a six-year low. “It’s clear that the major producers, the Saudis, Russians, the U.S. and others, are battling for market share,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone. West Texas Intermediate for October delivery dropped $1.09, or 2.6 percent, to $40.23 a barrel at 2:07 p.m. on the New York Mercantile Exchange. It touched $39.86, the lowest level since March 2009. The volume of all futures traded was 20 percent above the 100-day average. Prices are heading for an eighth weekly loss, the longest streak since 1986. The U.S. Energy Information Administration said crude supplies rose … continue reading
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