Oil Stocks Outlook for Wednesday Oct. 4

The price of Brent North Sea crude oil sank below $58 for the first time in almost eight months as traders anticipated a buoyant report on US energy stocks later in the day.

Brent North Sea crude for November delivery plunged 65 cents to $57.78 a barrel in electronic trading. Brent crude last traded below that level in December 2005 and last stood below $58 in February. The contract later stood at $58.02 a barrel, marking a drop of 41 cents from yesterday's close.

In electronic deals before the official opening of the US market, New York's main contract, light sweet crude for delivery in November, dropped 48 cents to $58.20 a barrel - also last seen in February.

Global oil prices are plummeting to multi-month lows as the market is calmed by healthy US stocks and a potential end to the Iranian nuclear energy crisis, dealers said.

New York and London crude prices - which had plunged by more than $2 yesterday - are down by more than one-quarter from record highs above $78 reached in July and August.

The US Department of Energy is due later today to release its weekly snapshot of energy inventories in the US.