Brent crude, on Tuesday, settled to a four-year low and inches closer to testing the psychologically important US$80 a barrel support, as traders continued to seek a bottom to a selloff that began in June, as per Reuters. US crude ended up, despite expectations that oil inventories in the United States rose last week. The gap between Brent and U.S. West Texas Intermediate (WTI) crude was at its smallest in three weeks as the markets diverged
Brent closed at US$81.67 a barrel, after touching a Sept. 2010 low of $80.46. It is down 25% from a June high above US$107. WTI settled at US$77.94 a barrel, after a session low at US$76.42. Some analysts said Brent fared worse on Tuesday on growing expectations that global producer group OPEC will not cut output at its Nov. 27 meeting. While U.S. oil supplies were also thought to be excessive, a higher refinery utilization in the United States could kick in coming weeks, changing the demand equation for WTI.