Oil fell two dollars a barrel on Tuesday to below 60 dollars, its lowest level since February. OPEC’s president called on members to deepen supply cuts, but there are no signs others are following Venezuela and Nigeria’s lead. Analysts agree the market is currently slightly oversupplied.
OPEC next meets in mid-December, and no-one is currently able to forecast if this is the data they will have to consider, or if the figures will be worse. From its peak in July at over 78 dollars Brent crude has fallen by 25 percent. The weather has played its part, with no hurricanes to disrupt production in the Gulf of Mexico, and a forecast for a mild winter.
The markets all fell on Tuesday apart from Zurich, New York, and Hong Kong. Moscow fell by more than two percent.
Technology stocks were down, led by Infineon and DaimlerChrysler. BP and Rio Tinto led the commodity producers down as well. After poor manufacturing data in the US yesterday, Wednesday sees the service sector report, and it could also indicate growth in Europe’s major market is slowing.