Oil prices retreat on global glut worries
Xinhua, September 14, 2016 Adjust font size:
Oil prices dropped Tuesday as worries about a global supply glut continued to weigh on the market.
Global oil demand growth is slowing at a faster pace than initially predicted, the International Energy Agency (IEA) said in its September report published on Tuesday.
"For 2016, a gain of 1.3 mb/d (million barrels per day) is expected - a downgrade of 0.1 mb/d on our previous forecast due to a more pronounced 3Q16 slowdown. Momentum eases further to 1.2 mb/d in 2017 as underlying macroeconomic conditions remain uncertain," said the report.
A stronger greenback also made the dollar-denominated oil less attractive for holders of other currencies.
The dollar index, which tracks the greenback against six major peers, was up 0.56 percent at 95.626 in late trading Tuesday.
The West Texas Intermediate for October delivery decreased 1.39 U.S. dollars to settle at 44.90 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery lost 1.22 dollars to close at 47.10 dollars a barrel on the London ICE Futures Exchange. Endit