Oil falls on pre­dic­tion that de­mand will ease

USA TODAY US Edition - - MONEY - Chris Wood­yard @ChrisWood­yard USA TO­DAY

De­mand for oil world­wide is still grow­ing, but not as fast as pre­vi­ously pre­dicted, the In­ter­na­tional En­ergy Agency says in a new re­port Tues­day.

Lower growth in oil de­mand raises ques­tions about the strength of the global econ­omy, but in this case it does not ap­pear to sig­nal a new oil glut. Still, the en­ergy agency’s re­port was enough to rat­tle oil mar­kets. The bench­mark U.S. crude, West Texas In­ter­me­di­ate, fell to $44.90 a bar­rel, down $1.39 or 3%. Brent crude was down to $47.10, down $1.22 or 2.5%.

The IEA says the world’s oil sup­plies shrank slightly in Au­gust de­spite more vig­or­ous pump­ing by Mideast pro­duc­ers.

The IEA’s Oil Mar­ket Re­port was re­vised to pre­dict that the world will be de­mand­ing an­other 1.3 mil­lion bar­rels a day this year, down 100,000 bar­rels a day from its pre­vi­ous fore­cast “due to a more pro­nounced” slow­down in the third quar­ter. The slow­down is ex­pected to con­tinue into 2017, when de­mand will shrink again to 1.2 mil­lion bar­rels a day.

World oil sup­plies were down 300,000 bar­rels a day in Au­gust due to re­duced pro­duc­tion in coun­tries that aren’t mem­bers of the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries. Higher out­put in OPEC coun­tries nearly off­set the de­cline, the IEA says. Pro­duc­tion was strong, in par­tic­u­lar, in Kuwait and the United Arab Emi­rates.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.