Oil declines under $92 to 27-month low

Brent crude for November delivery was down $1.73 at $92.43 a barrel by 1341GMT. It earlier hit $91.55, its lowest since June 2012. US November crude lost $1.06 to reach $89.67 per barrel, a near 18-month low.

Sharp cuts in official selling prices from state producer Saudi Aramco to Asian customers on Wednesday came as the clearest sign yet that the world’s largest exporter is trying to compete for crude market share, amplifying supply concerns.

“This is a structural change in the oil market, with Saudi Arabia explicitly stating that they are willing to compete on price,” said Bjarne Schieldrop, chief commodities analyst at SEB in Oslo.

“I think Brent will fall below $88 before we see the bottom of the market.”

Carsten Fritsch at Commerzbank said Saudi Arabia’s price differentials are now near the lowest since December 2008.