U.S. September crude ends higher at expiry, Brent slumps
By Robert Gibbons
NEW YORK (Reuters) - Expiring front-month U.S. crude prices settled higher on Thursday in volatile trading after slumping to a fresh 6-1/2-year low as a supply glut and concerns about China's economy pressured Brent crude.
A weaker dollar and the formation of the first hurricane of the 2015 Atlantic season were supportive to crude, even with Hurricane Danny still far from affecting any land or oil infrastructure. [USD/]
U.S. futures retested support near $40 a barrel early in the session, falling to their lowest level since 2009, and Brent fell to a fresh October contract low above $46 a barrel as a global supply glut and concerns about sputtering growth in China continued to weigh on oil prices.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan shed 1.5 percent to a two-year low, as anxiety about global economic growth pressured equities in Europe and the United States. [MKTS/GLOB]
"Global equities are a negative price driver for the oil and broader commodity complex," Dominick Chirichella, senior partner at Energy Management in New York, said in a note.
U.S. September crude oil CLU5 rose 34 cents to settle and go off the board at $41.14 a barrel, after falling to $40.21.
U.S. October crude CLV5 posted a five-cent gain to settle at $41.32, but turned lower in post-settlement trading. Earlier in the session it fell to $40.50, a contract low.
Brent October crude LCOc1 fell 54 cents to settle at $46.62. It extended losses to a contract low of $46.06 by 4:25 p.m. EDT (2025 GMT) in post-settlement trading. Continued...