No. of views : (1642)
Oil prices down after energy watchdogs reduce demand forecast
Posted on: 11/Feb/2016 10:46:05 PM
The price of oil has reduced again for a fourth consecutive session. It went down close to a twelve and a half year lowliest month. Weak demand forecast from the US government and other western governments and weak equities have been attributed to the lower prices.
A US broker and commodities expert says, The longs got out, the shorts jumped back in and there was possibly a whole lot of hedging by producers today to sell oil at whatever low price they could. It`s very difficult for anyone to be positive on this market with the kind of data that`s been coming out.
Crude oil company Brent’s barrel was priced at $30.32 on Tuesday. This is a 7.8 percent or $2.56 reduction in the price. US crude costed $27.94 which is a 5.9 percent or $1.75 drop. US gasoline went down 6 percent and heating oil went down by 7 percent.
The prices hit these lows after the US Energy Information Administration (EIA), which is the energy watchdog, lowered the oil demand growth forecast for the next two years. This move came after the International Energy Agency (IEA), which is based in Paris, released a statement that said that the world would remain awash with unwanted oil for the coming year.
Another expert has said, The IEA report was a bearish blow, followed by the EIA report, which sings from the same hymn sheet.
Post your requirement - We will connect with the right vendor or service provider
