Oil falls below $60 a barrel

Calcutta News.Net
Friday 10th July, 2009

Crude dropped below $60 a barrel Friday, down 40% on its record $147 price reached exactly one year ago.

The International Energy Agency (IEA) however says prices should pick up in 2010.

The agency says demand for next year will be "dramatically different," from this year. It forecasts consumption in 2010 will grow by 1.4 million barrels a day.

The IEA says it is concerned about current readings of the economy, and hints the outlook between now and 2010 may not refelect the recovery previously anticipated.

“Destocking is probably largely over by now, yet demand data in key countries, predominantly the U.S., have if anything worsened in the past few weeks,” the IEA said.

“We thus remain sceptical regarding the much-trumpeted, strong second-half 2009 demand rebound.”

“The sensitivity of US drivers to retail price fluctuations depends largely on their income prospects,” it said.

Have your say on this story