Oil

Oil: West Texas Intermediate (WTI) crude oil extends its price slump to its lowest level in two years, as concerns grew that rising supplies in the US will add to the global glut and further fuel the bear market. US oil futures fell by 1.5% to US$80.76/barrel for its 7th decline in eight days. Oil prices recently entered a bear market, as shale supplies in the US rose to its highest level in almost 30 years amid a slowdown in global demand. Meanwhile, producers in the OPEC are responding by cutting down prices even further, rather than reducing their output, in a bid to increase their market share. According to Bloomberg estimates, US crude stockpiles probably rose to 364.1m barrels for the week ending 10 Oct, while separately IEA is projecting global oil demand to face its slowest growth since 2009, rising by just 650,000 bpd this year. However in what could be a slight respite, some analysts are predicting that oil’s collapse could be bottoming, with BofA and BNP forecasting crude oil to trade above US$80 per barrel. The estimates hinges on expectations that OPEC will reduce output next month, in a bid to offset shrinking demand.