Economics

Oil falls to $ 85 per barrel record low

15 october 2014 | 11:44

Negative dynamics of "black gold" prices are marked on the background of Saudi Arabia statements that it has no objection to low world prices.

 

Oil
Oil prices continue to fall
ustoj.com
November futures price for Brent crude oil on the ICE Futures Europe London exchange falls to its weakest level since 2010 and reaches $ 85.04 per barrel on Tuesday, according to the Wall Street Journal.

In New York American WTI crude oil has fallen by 4.6% to $ 81.84 per barrel. This is the maximum drop in almost two years, now the price is at the level of June 28, 2012.

The negative dynamics of "black gold" prices are marked on the background of Saudi Arabia statements that it has no objection to low world prices for a long time and most likely is not going to reduce production. It is expected that on Nov. 27 OPEC will consider production quotas that is 30 million barrels per day.

In addition, on Tuesday International Energy Agency has cut its forecasts for global demand in 2014 by 200 thousand barrels per day to 92.4 million barrels, waiting for demand growth by the end of 2014 by 0.7% in annual terms. The IEA estimates that in 2015 world oil demand will increase by 1.1 million barrels per day, or 1.2% to an average of 93.25 million barrels per day.

However, the previous agency outlook for oil demand in 2015 is reduced by 300 thousand barrels per day. The IEA has estimated that in 2014 the growth in global oil demand may be the weakest since 2009.

Earlier it was reported that Venezuela demanded the immediate convocation of the extraordinary meeting of OPEC in order to discuss the situation on the world oil market, in particular, the record oil prices drop.

Source: Wall Street Journal

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