Brent crude oil dips below $40

LONDON Brent crude fell briefly through $40 yesterday for the first time in three weeks, extending heavy losses to a fifth session as renewed exports from Iraq and higher-than-expected US petrol inventories encouraged big-money funds to take profits.

London Brent crude fell 59 cents to $40.09 a barrel, having briefly touched a three-week low of $39.80.

US light crude dropped 48 cents to $42.99 a barrel, after slumping $1.74, nearly 4%, on the New York Mercantile Exchange on Wednesday to its lowest close since August 4.

US prices are now nearly $6.50, or 13%, below last week’s record $49.40 high.

Prices have been helped lower by profit-taking by hedge funds, dealers said, following Wednesday’s US government oil supply report showing refiners producing enough petrol to meet summer vacation driving demand.

OPEC president Purnomo Yusgiantoro said the retreat in global prices was not moving fast enough, and the producers’ cartel wanted to see a swifter fall. OPEC planned to discuss whether to raise its official oil output ceiling at its September 15 meeting in Vienna, he added.

“We hope the price will continue to fall. We hope it can fall to around $30 per barrel.”