Oil price drops amid fears over demand

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Oil bonuses have dropped to their lowest level in over eight months into the middle fears about a slowdown in demand.

International benchmark Brent uncouth dropped almost 7% to $65.11 (£50.24) a barrel, its lowest level since Walk.

US oil – known as West Texas Intermediate – fell over 7% to $55.69, its dirtiest level since November last year and the twelfth day it has fallen.

The new falls came after oil cartel Opec reduced its forecast for epidemic oil demand next year.

Opec now expects world demand to luxuriate 1.29m barrels a day next year, about 70,000 barrels a day turn down than last month’s forecast.

Saudi Energy Minister Khalid al-Falih had already said on Monday that Opec had agreed there was a poverty to cut oil production next year to prevent oversupply.

Saudi Arabia is the largest associate of the Opec cartel of Middle East and African oil producers.

Oil price fall downs

Capital Economics said it was clear that “fears over immoderation supply in the oil market are starting to build”.

It said that it expected “down in the mouth global economic growth” to drive demand even lower than Opec was currently forewarning.

Brent Crude has now fallen over 25% since hitting a four-year lofty in early October, while US oil has lost 28% since its October high point.

“It’s like a run on the bank. It’s getting to the point where it doesn’t seem to be everywhere fundamentals anymore, but a total collapse in price,” said Phil Flynn, analyst at Premium Futures Group.

The latest drop in price comes after US President Donald Trump tweeted on Monday that he hoped there discretion be no oil output reductions, after Saudi Arabia said on Sunday that Opec was inasmuch as cutting supply next year.

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