Oil market turns bearish on excess supply concerns

New York

OIL fell below US$40 a barrel in New York for the first time since April, falling into a bear market on concern that the global supply glut will expand.

Saudi Arabia cut prices to Asian customers as the country continues to fight for market share. Drillers in the US boosted the number of rigs seeking oil for a fifth week, the longest run of gains since last August, according to data from Baker Hughes Inc. US crude and gasoline supplies are at the highest seasonal level in at least two decades. West Texas Intermediate (WTI) settled 22 per cent below its June peak on Monday, meeting the common definition of a bear market.