Oil fell in New York, heading for the biggest quarterly decline since 2008, on speculation that fuel demand will drop as the U.S. economy slows and Europe’s debt crisis batters consumer sentiment.
Futures slipped as much as 2.1 percent after posting the biggest gain in four months yesterday. U.S. inventories of gasoline and crude oil increased last week, according to a Bloomberg News survey before today’s Energy Department report. Commerce Department data today may show U.S. durable goods orders fell and a report tomorrow may confirm European consumer confidence slid to a two-year low in September.
“We’re likely to see more of a correction in oil prices as the slowdown in economic growth and demand does not bode well,” said Eliane Tanner, an analyst at Bank Sarasin & Cie AG in Zurich, who last month correctly predicted oil would drop. “Brent prices could go below $95, but as we approach $90 it becomes a buying opportunity.”
Crude for November delivery slid as much as $1.79 to $82.66 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.10 at 11:10 a.m. London time. The contract yesterday climbed $4.21, or 5.3 percent, to $84.45. It was the biggest gain since May 9.
Oil is down 5.3 percent this month and 8 percent this year. Prices have dropped 12 percent since the end of June, the biggest quarterly loss since the last three months of 2008.