FT: “The price of oil tumbled nearly three dollars a barrel on Tuesday after the west’s energy watchdog cut its forecast for oil demand growth in a sign of the darkening outlook for the global economy.”
“A glut of crude in the market, partly driven by the US shale boom, combined with weakening oil demand has pushed the price of oil to its lowest level since 2010. Brent, the international oil benchmark, which has plunged almost 25 per cent since mid-June, fell about $3 to below $85.50 in afternoon trading in New York on Tuesday.
The International Energy Agency also said it did not expect Opec to cut supply when it meets next month despite calls from some members of the producers’ club for curbs on output.
The average price of a US gallon of petrol has fallen 10 per cent since early July, hitting $3.38 last week, and is set to fall further to reflect the recent decline in crude, putting more spending power into the pockets of US consumers.
….In its closely watched monthly oil market report, the International Energy Agency, the rich nations’ watchdog, cut its forecast for world oil demand growth this year by 250,000 barrels a day on “reduced expectations of economic growth”. That suggests demand will grow at its slowest pace in five years.”
Future Today
