Oil Plunges as Supplies Rise and Saudis Pump More

19-Sep (CNBC) — Oil prices fell sharply on Wednesday, extending their slide as U.S. crude supplies surged more than expected and Saudi Arabia continued efforts keep prices in check.

U.S. light, sweet crude skidded nearly 4 percent, falling below $92 a barrel.

…The selloff came as the U.S. reported that crude supplies jumped last week by 8.5 million barrels — far more than expected.

There also has been a dramatic decline in distillate demand, which is down 11 percent from a year ago.

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PG View: Oil’s plunge is blunting QE3′s positive impact on gold. One might deduce from the sharp drop in energy prices that markets have waning faith that global central bank measures will reinvigorate growth.