Thursday, December 11, 2014

Brent Oil Drops Near $63 on Supply Glut, Demand Woes

Brent crude continued its march downwards on Friday and dropped to a 5-1/2-year low of $63 a barrel, bringing this week’s losses to more than 8 percent amid persistent concerns over a supply glut and a bearish demand outlook.

The Organization of Petroleum Exporting Countries (OPEC), which accounts for a third of global oil output, cut its 2015 demand forecast to the lowest in more than a decade earlier this week.

“The recent bout of weakness has been a function of the concerns shifting a little bit more to the demand side now,” said Mark Keenan, head of commodities research in Asia for Societe Generale in Singapore.

Reuters

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