Oil tumbled below $90 a barrel in New York Wednesday, erasing gains through 2011, as U.S. supplies increased to a 22-year high and European leaders met to discuss the euro region’s debt crisis.
Futures fell 2.1 percent after the Energy Department said stockpiles rose 883,000 barrels to 382.5 million barrels last week. The European Union summit is the 18th since Greece was shaken by debt and the first since an anti-austerity campaign carried Francois Hollande to France’s presidency. The euro sank to the lowest level in almost two years.
“We’re heading lower because supplies continue to rise and the dollar is surging against the euro, hurting all commodities,” said Todd Horwitz, chief strategist at Adam Mesh Trading Group in Chicago. “‘I’m looking for prices to fall to the mid-$80s and eventually test last summer’s low of near $75.”