World oil prices slumped on Tuesday as the International Energy Agency (IEA) warned that a global supply glut would last six months longer than thought.
World oil prices slumped on Tuesday as the International Energy Agency (IEA) warned that a global supply glut would last six months longer than thought.
Prior to Tuesday’s revised forecast from the IEA watchdog, prices were already falling after OPEC sparked its own fresh worries about the oversupply crisis.
Around 10.15 am (GMT), US benchmark West Texas Intermediate for delivery in October was down $1.12 at $45.17 a barrel. Brent North Sea crude for November delivery shed $1 to $47.32 a barrel compared with the close on Monday.
“Oil remains under pressure again today after the IEA reported that oil demand growth will be lower than expected this year,” said Craig Erlam, senior market analyst at Oanda trading group.
“This at a time when OPEC is pumping at near-record levels and non-OPEC countries are expected to pump at a faster rate than previously expected in 2017,” he said.
