Oil Slump Deepens on Unexpected Jump in U.S. Fuel Stockpiles - Bloomberg

Oil Slump Deepens on Unexpected Jump in U.S. Fuel Stockpiles - Bloomberg:

Oil plunged, re-entering bear-market territory, as a surprise increase in American fuel stockpiles fueled worries about a growing glut, feeding into an increasingly dismal economic view.

Futures in New York fell as much as 4.7% on Wednesday to the lowest in almost two months after a surprise increase in U.S. inventories. Crude was also swept up in a global meltdown of stock and commodity markets after rate cuts in New Zealand, India and Thailand escalated recessions fears and spurred a flight to U.S. Treasuries and other safe havens.

West Texas Intermediate oil for September delivery declined $2.23 to $51.40 a barrel at 11:03 a.m. on the New York Mercantile Exchange after earlier reaching $51.10.

Brent for October settlement fell $2.12 to $56.82 on the London-based ICE Futures Europe Exchange. The contract sold for a premium of $5.43 to WTI for the same month.