NEW YORK: Oil fell below $80 a barrel for the first time since 2010 on Thursday.The Organization of the Petroleum Exporting Countries (OPEC) said that demand for oil was expected to fall around a million barrels a day next year because of the US shale boom.
Saudi Arabia, also gave little away about whether it will cut output to remove surplus oil from the market, ahead of what is shaping up to be a landmark OPEC meeting on Nov 27.
The dollar added to the pressure on oil as it moved towards a recent seven-year high against the yen, driven by speculation that Japanese Prime Minister Shinzo Abe will call a snap election in December.
A senior figure in Abe’s ruling party told reporters it appeared the premier had decided to call an election. If he wins economists believe it will clear the way for further stimulus measures.
Oil’s fall also put renewed pressure on Russia’s hard hit rouble.
It was last down over 1 percent at 46.27 to the dollar and with tensions also bubbling in Ukraine again, traders were watching to see whether the central bank would be forced into more decisive action to defend the currency.
In Europe’s bond markets, Italian and Spanish yields dipped as a downbeat survey from the European Central Bank underlined the need for further policy easing, though the euro bucked the trend, rising 0.2 percent against the dollar.
Safe-haven gold was at $1,160.76 per ounce, above Friday’s 4 1/2-year low of $1,131.85, while growth-attuned metal copper rose 0.2 percent to $6,694 a tonne on hopes for stimulus measures from China.
Markets, oil drop in Asia but bitcoin edges towards $50,000
HONG KONG: Markets fell in Asia on Friday in holiday-thinned trade with investors awaiting developments in US stimulus talks, while...
