Oil prices continued to tumble on Monday, as a supply glut was
accentuated by fears of negative consequences of the attacks on the
global economy. Syria’s is the first War in the Middle East that has not
triggered a rise in oil prices.
Brent was down by 1,6% at $43,76 a barrel. This drop in oil prices is
consistent with last week’s trend, following worse than expected
Eurozone figures on Friday. Prices have dropped by 60% since June 2014
and currently stand at multi-year lows. Prices have dropped to as low as
$42 this year, and the market is retreating to all-year lows.
On Monday, the oil outlook looked worse as Japan was now officially
in recession with its economy dropping by 0,8% over the third quarter.
Japanese businesses refuse to channel excess liquidity to wages and
investment. Consumption in Japan accounts for 60% of the economy.
Reuters cites
an OPEC official who claims that more travelling controls could further
affect negative demand as it did following the September 11 attacks.
Meanwhile, there is a relatively warm winter and the market awaits for
further Iranian exports.
http://neurope.eu/article/the-oil-paradox-energy-prices-continue-to-tumble/