CANBERRA: Australia oil prices steadied below $49 a barrel on Tuesday after the International Monetary Fund cut its forecast for global economic growth in 2015 implying lower demand for fuel.
Global growth is projected at 3.5 percent for 2015 and 3.7 percent for 2016, the IMF said in its latest World Economic Outlook report, reducing its forecast by 0.3 percentage points for both years.
New factors supporting growth – lower oil prices, but also depreciation of euro and yen – are more than offset by persistent negative forces,” said Olivier Blanchard, the IMF’s chief economist.
Brent crude traded around $48.84 a barrel by 1050 GMT, unchanged from Monday’s close. U.S. crude was trading down $1.28 cents from Friday’s close at $47.41 a barrel. U.S. markets were closed on Monday for a public holiday.Oil prices have dropped by more than half since June as output has soared while demand growth has slowed.
Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries have said they are leaving the oil market to find its own level and hope lower fuel prices will stimulate more demand in the long run.
