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Media

Oil slides to three-month low; benefits ASX 'aviation plays'

Oil futures settled at their lowest since early July after as crude inventories increased to the highest level in three months in the U.S., the world’s biggest oil-consuming country.

The lower oil price will help Australian Stock Exchange listed aviation companies such as Qantas (ASX: QAN), Air New Zealand (ASX: AIZ) and Virgin (ASX: VAH) due to lower fuel costs.

November crude fell 1.6 percent to finish at $99.22 a barrel on the New York Mercantile Exchange. That was the lowest close for a most-active contract since July 1, according to FactSet data.

The U.S. Energy Information Administration said crude supplies for the week ended Oct. 11 rose 4 million barrels to 374.5 million. That was more than the market expected and the fourth-straight weekly climb.

The EIA report had been delayed due to the government's recent 16-day shutdown that ended October 17.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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