Brent oil retreats to 28-month low.

FT: “Brent crude hit a 28-month low on Thursday while benchmark US oil dropped below the $90 a barrel mark for the first time since April 2013, pointing to significant stocks on both sides of the Atlantic.”
“ICE November Brent, the international oil benchmark, fell $2.23 to $92.04 a barrel – the lowest since June 2012. Nymex November West Texas Intermediate eased $2.07 to $88.57.
The latest sell-off came after Saudi Arabia noticeably lowered its official selling prices for its customers across all regions in November. In some cases, prices were at levels similar to those during the 2008-09 financial crisis.
“Such measures give rise to doubts about Opec’s longstanding strategy of striving above all for price stability,” said Carsten Fritsch, analyst at Commerzbank.
Brent has fallen from $115 a barrel in mid-June amid an oversupply from the North Sea and Atlantic Basin, which has coincided with greater North American production. Sustained output from Iraq and Libya – despite violence ravaging both countries – has also kept prices at bay, as has weaker demand from Europe and China.
….Although Saudi Arabia and the UAE are able to tolerate further falls with fiscal break-even prices – the price at which the budget is balanced – at $89 and $74 a barrel, Iran’s stands at about $130, according to data compiled by Citigroup.
….Meanwhile, the US Energy Information Administration said on Wednesday that US crude oil inventories decreased by 1.4m barrels last week, but stockpiles at Cushing, Oklahoma – the delivery point for WTI contracts – increased by 315,000 barrels to 20.5m last week.”