Oil futures extend decline
Oil extended its decline after the biggest drop in two months on speculation that a slowing US economy may curb fuel demand.
Futures fell as much as 0.6 per cent in New York, extending yesterday's 2.4 per cent decline, the most in two months.
Crude tumbled more than $3 in less than a minute in the previous sessions as October options were about to expire.
The Federal Reserve Bank of New York's general economic index, known as the Empire State Index, fell to a three-year low.
"The overnight falls have introduced some concerns about long positions," or bets that prices will rise, said Michael McCarthy, a chief market strategist at CMC Markets in Sydney.
Oil for October delivery fell as much as 58 cent to $96.04 a barrel in electronic trading on the New York Mercantile Exchange and traded at $96.24 at 2.18 pm Singapore time.
The contract slid $2.38 yesterday to $96.62, the lowest close since September 10. Prices are 2.7 per cent lower this year.
Brent oil for November settlement fell 84 cents to $112.95 a barrel on the London-based ICE Futures Europe exchange. It dropped 2.5 per cent yesterday.
The front-month European benchmark grade's premium to the corresponding West Texas Intermediate contract was at $16.43, down from $16.84 yesterday.