Oil Plunges to July Low as Algorithms Amplify Supply-Driven Drop
- US benchmark WTI falls 4.9% to settle below $73 a barrel
- Crude crosses 200-day moving average as supplies remain robust
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Oil plummeted to the lowest since July as trend-following trades accelerated losses that were kicked off by swelling inventories and the failure of key technical support levels.
Brent crude slid by 4.6% to settle below $78 a barrel after algorithm-driven traders dumped crude holdings when prices dipped under $80 a barrel. West Texas Intermediate sank 4.9% to settle below $73 after a report on Wednesday showed rising US stockpiles and the grade breached its 200-day moving average.