Oil prices fell below $85 a barrel Friday amid a wide selloff in commodity and equities markets, as worries grow that China may soon raise interest rates in an effort to slow growth in the energy-hungry country.
Light, sweet crude for December delivery was recently down $3.12, or 3.5%, at $84.69 a barrel on the NYMEX, the lowest level since Nov. 3. Brent crude on the ICE futures exchange fell $2.97, or 3.4%, at $85.84 a barrel.
Data from China released Thursday showed inflation rising faster than anticipated, which could force China’s central bank to raise interest rates or take other steps to slow the growth of its economy. The Chinese government Thursday reported consumer prices rose by 4.4% in October. Average inflation this year has now reached 3% and will likely rise unless readings slow sharply in the next two months.
via OIL FUTURES: Crude Tumbles Below $85 Amid Broad Selloff – WSJ.com.