Oil price news: Oil declines again as demand outlook flashes bearish signs
BNN Bloomberg
Oil fell further after closing at a three-month low as a forecast drop in U.S. gasoline consumption added to a growing array of indicators suggesting the demand outlook is worsening.
West Texas Intermediate was below US$77 a barrel after declining 4.3 per cent on Tuesday. American gasoline demand will drop to a 20-year low next year on a per-capita basis, according to a US government report, with prices at the pump and inflation likely causing a reduction in discretionary driving. Global equities were also down with investors on edge ahead of more comments from the U.S. Federal Reserve.
Oil has fallen sharply over the last three weeks as the Israel-Hamas war-risk premium faded and the demand outlook deteriorated. There are worries over the state of the economy in China, the world's biggest importer, and fresh doubts on whether the U.S. Fed has finished tightening. On the supply front, Russian shipments are running near a four-month high, while industry data showed U.S. crude stockpiles increased by almost 12 million barrels last week.
