Oil prices continue to slide
Posted Aug 18, 2010 10:55 am.
This article is more than 5 years old.
The price of black gold has dropped over eight per cent since the start of last week, amid signs the demand for fuel in the United States is getting soft.
Just last week oil was trading at $82 USD a barrel.
Experts say for the most part, this comes down to the old supply and demand rule.
Crude supplies continue to increase while demand decreases, so it’s not surprising that the price of oil is going to move downwards.
Economist Fred Ketchen with Scotia Capital says at least for the next few months, expect to see continuing pressure because of the state of North American economies.
“The American economy has no push, no strength and no vibrancy to it,” he says. “As long as that continues demand is going to languish.”
Ketchen says he wouldn’t be surprised if the price of oil dropped another three or four dollars based on the demand seen lately, and the continuing growth in supplies.
