Brent crude slid below US$100 a barrel on Monday for the first time in 14 months as Chinese and U.S. data pointed to slower-than-expected growth in the world’s top oil consumers.
Weak economic growth combined with ample supply has pushed oil prices down from a high for the year above US$115 hit in June, complicating efforts by central banks to ward off deflation and putting pressure on the budgets of major oil producers.
Brent crude fell to a fresh 47-month low on Wednesday before recovering to around US$84 a barrel, as faltering global growth curbed demand for fuel at a time of heavy oversupply.
Oil saw its biggest daily fall in more than three years on Tuesday after the West’s energy watchdog slashed its forecasts for world oil demand for this year and 2015.
Core members of the Organization of the Petroleum Exporting Countries appear to be focused on fighting for market share rather than on cutting production to shore up prices.
WASHINGTON (AP) — The Federal Reserve is keeping U.S. interest rates at record lows in the face of persistent threats from a weak international economy and excessively low inflation.Fed officials said Wednesday that the U.S. economy is still expanding modestly. But in a nod to recent weaker data, they said in a statement that the pace of job gains had slowed — an indication that they may be concerned about the pace of hiring.
WASHINGTON — U.S. job growth rose less than expected in August, which could dim prospects of a Federal Reserve interest rate hike later this month, even as the unemployment rate dropped to a near 7-1/2-year low of 5.1 per cent and wages accelerated.
Nonfarm payrolls increased 173,000 last month as the manufacturing sector lost the most jobs since July 2013, after an upwardly revised 245,000 rise in July, the Labor Department said on Friday. It was the smallest gain in employment in five months.
LONDON — Brent and U.S. WTI crude oil prices fell to their lowest levels in almost six years on Tuesday as a big OPEC producer stood by the group’s decision not to cut output to tackle a glut in the market.
Oil prices have fallen 60 per cent from their June 2014 peaks, driven down by rising production, particularly U.S. shale oil, and weaker-than-expected demand in Europe and Asia.
China’s slowdown appears to have bigger repercussions for other countries than had been expected, the IMF said.
The troubles in China have sent the prices of commodities such as oil and copper sliding, and, according to The BBC, the falls have hit exporters of commodities, such as Brazil and Russia, particularly hard.
BEIJING: China's ailing economy showed few signs of improvement in May, with factory output steadying but investment growing at its slowest rate in nearly 15 years, pointing to further weakness unless Beijing ramps up its stimulus efforts. A flurry of data from power output to retail sales released on Thursday showed no convincing pick-up in the world's second-largest economy despite three interest rate cuts since November.
Brent crude oil sank below $101 a barrel on Monday to a nine-month low after bleak Chinese and U.S. data stoked worries of a slowdown in economic growth in the world’s top oil consumers.
China’s economic recovery unexpectedly stumbled in the first three months of 2013, with growth easing to 7.7% from 7.9% in the final quarter of last year. Economists had forecast 8% growth.