The price of Brent crude plummeted below $84 a barrel today after the International Energy Agency (IEA) cut oil demand growth forecasts.
Reuters reported that Brent for November dropped $4 to a 47-month low of $83.37, while US crude fell $1.10 a barrel to $80.74.
The Organization of the Petroleum Exporting Countries (OPEC) are not showing any signs of plans to reduce oil production, in order to counter the decline in oil prices.
OPEC, which produces about 40% of the world’s total crude oil, is due to meet next month in Vienna, Austria to discuss its production targets.
Iran has joined Saudi Arabia and Kuwait in playing down any talks regarding the reduction of oil output.
Meanwhile, data from the US indicates there is no important reduction to the boom in shale oil output.
The US Energy Information Administration said the country’s shale oil output is set to increase by approximately 106,000 barrels per day in November, compared with this month.
A survey by Reuters has revealed that US commercial crude stocks were estimated to have increased in the week ended 10 October.
The American Petroleum Institute will release its report later today, while the US Department of Energy’s Energy Information Administration will unveil its weekly data on Thursday.
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