Oil prices are expected to keep sliding well into 2015, held down by weak demand and increased shale production, the International Energy Agency said Friday, as it maintained its full-year forecast for slow global consumption growth.
Global crude futures slumped on Thursday to lows not seen since September 2010, with London’s Brent and US benchmark Texas crude for delivery in December diving well below the $80-per-barrel mark. Brent hit an intraday low of $76.76 early on Friday, the lowest since September 2010, before climbing back up to $79.10 as of 1417 GMT. U.S. crude was up 58 cents at $74.79.
The IEA said while there had been speculation that the high cost of shale extraction “might set a new equilibrium for Brent prices in the $80 to $90 range, supply/demand balances suggest that the price rout has yet to run its course”. Read more here.
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