Oil prices lower

AFP, LONDON: World crude prices slid yesterday, pressured by the long-standing issue of oversupplies as OPEC cut a demand forecast for next year.
US benchmark West Texas Intermediate for delivery in October shed $1.37 to $44.55 a barrel compared with Friday’s close. Brent North Sea crude for October dropped $1.03 to stand at $47.86 a barrel in London afternoon deals.
The cost of oil had already tumbled last week after Goldman Sachs slashed its price forecasts for next year in the face of a larger-than-expected glut.
Yesterday, the OPEC oil cartel cut its forecast for global oil demand growth in 2016 as emerging markets, the motor of world growth in recent years, splutter.
Better-than-expected growth in the United States and the eurozone prompted the Organization of the Petroleum Exporting Countries to nudge up its forecast for world oil demand growth this year to 1.46 million barrels per day to 92.79 million bpd.
However OPEC cut its 2016 forecast to a 1.29 million bpd gain to 94.08 million bpd “due to the projected slower economic momentum in Latin America and China”.
Weak demand from China, the world’s top energy consumer, is particularly weighing hard on the market, with another round of weak data from the world’s number two economy heaping further pressure.

Oil prices lower

AFP, LONDON: World crude prices slid yesterday, pressured by the long-standing issue of oversupplies as OPEC cut a demand forecast for next year. US benchmark West Texas Intermediate for delivery in October shed $1.37 to $44.55 a barrel compared with Fridays close. Brent North Sea crude for October dropped $1.03 to stand at $47.86 a barrel in London afternoon deals. The cost of oil had already tumbled last week after Goldman Sachs slashed its price forecasts for next year in the face of a larger-than-expected glut. Yesterday, the OPEC oil cartel cut its forecast for global oil demand growth in 2016 as emerging markets, the motor of world growth in recent years, splutter. Better-than-expected growth in the United States and the eurozone prompted the Organization of the Petroleum Exporting Countries to nudge up its forecast for world oil demand growth this year to 1.46 million barrels per day to 92.79 million bpd. However OPEC cut its 2016 forecast to a 1.29 million bpd gain to 94.08 million bpd due to the projected slower economic momentum in Latin America and China. Weak demand from China, the worlds top energy consumer, is particularly weighing hard on the market, with another round of weak data from the worlds number two economy heaping further pressure.