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Oil Prices Continue to Fall
Daily worldwide demand for oil in 2014 will grow by its slowest pace in 15 years, predicts the Paris-based International Energy Agency.
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Daily worldwide demand for oil in 2014 will grow by its slowest pace in 15 years, predicts the Paris-based International Energy Agency.
IEA now expects daily petroleum consumption will rise by 700,000 barrels 22% less than it forecast last month to 92.4 million barrels this year.
But supplies of petroleum are at 93.8 million bpd and climbing. That's because producers, led by the Organization of the Petroleum Exporting Countries, aren't cutting back on output in spite of expanding supplies. OPEC, which pumps about 40% of the world's crude, boosted output to a 13-month high in September.
The result of rising production and falling demand is a continuing drop in oil futures. Prices have plunged 20% since June. Prices rallied slightly on Thursday, but analysts predict more decline ahead.
The average price of a gallon of gasoline in the U.S. is at $3.16, down 22 cents from a month ago, according to the AAA Daily Fuel Gauge Report. The average is about 50 cents lower than in June.
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