Brent drops below $ 100 for first time since July 2012

Wednesday, 17 April 2013 01:19 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): Brent crude sank below $ 100 a barrel for the first time in nine months on Tuesday, extending a rout triggered by data from China and the United States that weakened the outlook for demand.

Earlier in the session, gold fell to a more than two-year low and Brent lost over $ 2. Gold and precious metals later bounced back, and oil shaved a dollar off its losses.

Brent crude for June delivery was down $ 1.10 at $ 99.53 per barrel by 1347 GMT. It earlier hit $ 98.00, the lowest since July 2012.

US crude for May delivery was down 69 cents to $ 88.02 a barrel after hitting a low of $ 86.06, its weakest since December 2012. Both were set for their longest losing streak since December.

Brent crude on Monday dropped about 3% after data showed economic growth in China, the world’s second-largest oil consumer, had unexpectedly slowed in the first three months of 2013.

Adding to downward pressure was a US regional manufacturing report showing the pace of growth slowed more than expected in April and other data showing US homebuilder sentiment waned for the third month in a row in April.

This rattled oil markets already spooked by forecasts for lower global oil demand growth.