BLOOMBERG: Energy forecasters expect the price to continue to fall as demand drops.
BLOOMBERG: Energy forecasters expect the price to continue to fall as demand drops.
This year’s 44 percent drop in crude has hurt the economies of oil-producing countries from Russia to Nigeria, reducing fuel demand. Brent crude is too low for 10 of OPEC’s 12 members to balance their budgets, yet not low enough for to force producers to scale back output. The U.S. is producing the most oil in three decades and OPEC members have pumped more than the group’s target level for each of the past six months.
“These low prices aren’t spurring an uptick in demand,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “Economies aren’t as energy intensive as they once were so the relationship isn’t that strong anymore.”
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