Oil extended its slump on concerns that slowing global growth will erode consumption a day after the market posted its biggest decline in more than a year.
After a strong third-quarter rally, crude has retreated sharply amid worries about the effect of elevated interest rates on the global economy, which have also rattled equity and bond markets in recent weeks. Oil’s drop followed a plunge in gasoline futures after data showed stockpiles swelled in the US and a measure of demand fell.
West Texas Intermediate settled near $82 a barrel, crossing beneath its 50-day moving average for the first time since July. Volatility also surged during the rout, roiling options markets.
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