Oil prices are rising again. They have been pushed up sharply by a surge in global stock markets.
Investors resumed buying shares in the expectation that the world’s central banks are getting ready to cut interest rates further to revive global economic growth.
That speculation was boosted by China cutting its interest rates for the third time in six weeks.
But the signals are mixed. Energy industry analysts at the bank has just put out a report saying that oil consumption in the United States is contracting at the sharpest rate since 1980.
It adds: “More importantly we are starting to see signs of oil demand slowing in emerging markets.”
Prices for crude have more than halved since hitting an all time record of 147 dollars in July.
They continued to fall last week, despite a cut in production by the producers cartel OPEC which is trying to defend prices.