Oil prices slumped to 21-month low points below US$60 a barrel in the week on prospects of sliding energy demand because of a global economic slowdown, traders said.
“Demand is starting to wane quite considerably,” Robert Montesfusco at Sucden brokers said. “We are not seeing any good demand,” he added.
Fears of the sharp global downturn have intensified after the IMF on Thursday warned that advanced economies would contract next year for the first time since World War II.
The IMF said advanced economies would now shrink by 0.3 percent next year. The organization had previously predicted 0.5 percent growth.
Oil prices have plunged in recent months as a global economic slowdown dampens demand for energy worldwide, coming off record highs above US$147 in July when fears of supply disruptions had sent them rocketing.
The International Energy Agency said on Thursday it expected the price of oil to rebound above US$100 a barrel and eventually reach US$200 by 2030.
In a report on the global energy outlook, the agency said it predicted the price to average US$100 from this year to 2015.
It also predicted that in 2030 the price would stand at just above US$200, which after adjustment for projected inflation, was equivalent to more than US$120 in real dollar values.
The agency said the figures represented a major adjustment from its forecasts last year after a review of the outlook for production costs and demand.
A decline in oil prices meanwhile gained momentum on Wednesday after US figures showed US gasoline stockpiles had jumped 1.1 million barrels last week, confounding market expectations for a drop of 600,000 barrels. Crude reserves held steady, instead of rising the 1.2 million barrels forecast by analysts.
US energy demand continued to decline as Americans consumed 6.7 percent less crude in the past four weeks compared with the same period a year ago, the government data showed.
In a volatile week’s trading, oil prices soared US$6 on Tuesday to above US$70 in New York as the US currency weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.
A weaker dollar makes oil priced in the US unit cheaper for buyers holding stronger currencies, pushing up demand.
OPEC, which pumps about 40 percent of the world’s oil, said it would cut output by 1.5 million barrels per day from last Saturday to counter falling prices.
By Friday, light sweet crude for delivery in December on the New York Mercantile Exchange fell to US$62.96 a barrel from US$64.50 a week earlier.
On London’s InterContinental Exchange, Brent North Sea crude for December slipped to US$58.80 a barrel from US$62.07.
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