Brent Drops Even Lower As Supply Glut Grows

Brent crude oil sunk lower on Thursday as the global supply glut continued to grow amid worries that the global economy was falling off track.

The commodity traded at $82.97 at 8:45 GMT after weak data from the U.S. on Wednesday exacerbated worries about a slowdown.

On Wednesday, retail sales in the U.S. dropped 0.3 percent in September, a worrisome sign for the nation’s economy.

The weak retail sales figure was closely followed by a separate report that showed U.S. producer prices had also slid in September, declining by 0.1 percent.

The data was concerning as the U.S. had been one of the only major economies to be on solid ground as both China and the eurozone have been struggling to return to growth. With U.S. economic data slipping as well, many are worried that the global economy is in for another downturn.

Related Link: Treasury And Mortgage Bond ETFs Hit New Highs

Also weighing on crude prices was the International Energy Agency’s decision earlier in the week to trim its oil demand growth forecast for this year and next.

The agency cited a weaker global economy for its cautious forecast and noted that prices will likely remain low as OPEC attempts to regain market share.

CNBC reported that OPEC member Venezuela has called for an emergency meeting for the cartel in order to discuss the recent price drop. For the moment, the group’s meeting remains on its regularly scheduled date, November 27.