Oil Demand Falls in 2008
It's hard to imagine that this is happening the same year that the price of oil hit an all-time high: The International Energy Agency today said that global oil demand will actually shrink .2 percent this year. Yes, oil hit a high of $147 a barrel this summer but the global economy has deteriorated so quickly that oil itself is now falling into a recession of sorts.
The IEA, which represents the interests of 28 oil-importing nations, also cut its forecast for global demand next year, saying a rebound in demand depends on economic recovery in the second half of 2009, the Associated Press reports. Crude oil today is trading at $44.85 a barrel.
In other news this morning, South Korea's central bank cut interest rates to 3 percent -- the deepest cut in the country's history. And in Europe, Sweden announced a $3.4 billion bailout for its auto industry.
Global stocks are mixed so far today. In Asia, the Nikkei and Hang Seng were up slightly, but the DJ Shanghai index fell 2.5 percent. In Europe, the markets are flat, stalled out in either slightly negative or positive territory. The DJ Stoxx index is down 1 percent.
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December 11, 2008; 7:28 AM ET
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Posted by: truthhurts | December 11, 2008 9:19 AM | Report abuse
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