Faltering demand and weaker equities are undermining market sentiment. (Bloomberg) — Crude in London tumbled below $40 a barrel for the first time since late June and futures in New York also plunged with faltering demand and weaker equities undermining market sentiment. Both Brent and West Texas Intermediate crude futures slid on Tuesday to their lowest levels in nearly three months. Asia’s stalling demand recovery, the end of the U.S. summer-driving season and increased supply from OPEC and its allies signal a bleak short-term outlook for oil prices. Both benchmarks are trading in a pattern known as contango, where the most immediate prices are far below those for supply contracts in later months. “The lack of fiscal support is starting to spook the markets a little bit,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “It’s showing up in oil with fears that you’re […]