Oil price drops further on forecast of weaker demand
PARIS — The price of oil is falling further after the International Energy Agency forecast a decline in demand.
The U.S. benchmark rate was down 21 cents on Friday at $36.55 a barrel, its lowest since early 2009, when the global economy was sinking into recession.
The IEA said in a monthly report that growth in demand for oil will ease next year to 1.2 million barrels per day, from 1.8 million barrels a day this year.
Production is increasing, further weighing on prices, largely due to OPEC countries. Several of the oil cartel’s members, notably Iran and Iraq, are looking to boost output as they emerge from sanctions and conflicts.
The IEA expects oversupply to continue at least until late next year, suggesting prices will struggle to recover.
