Oil prices continue to fall as the latest figures from the US showed petrol stockpiles there have increased. This week the cost of crude registered it biggest decline in three weeks.
Among the factors that are influencing traders are concerned that energy demand will slow down with higher interest rates. There are also signs Iran may settle the dispute over its nuclear programme without cutting oil exports and the year’s first Atlantic tropical storm did no damage to US oil production facilities.
The price of Brent crude is down from it’s recent peak of over seventy dollars a barrel but this time last year it was at fifty five dollars a barrel. The International Energy Agency in its latest monthly report trimmed its forecast for the growth in global oil demand this year. It predicted that demand in China, though strong, is likely to ease next year. Saudi Arabia has just reported a fall in production saying customers are asking for less crude as commercial stocks are plentiful.