A forecast by OPEC has hit hard at the stocks of the world’s energy sector and markets have dropped sharply. The oil cartel says it expects demand next year to fall to the lowest level since 2003. Prices could fall far below the current five-year low; the Bank of America today said it believed that $50 a barrel will be reached within months; Iran’s oil minister said that $40 could be hit. With oil producers cutting back sharply on dividends and capital spending plans the sector is certain to suffer, however economists are split as to whether the impact on the energy sector will outweigh the benefits to some other sectors of lower fuel costs. Once again producers of raw-materials and banks are also been punished in trading and there’s general risk adversity in the markets worldwide that is resulting in sell-offs.
The S&P TSX Composite Index closed down 342.78 (2.42 per cent)
The NYSE closed lower
Oil is trending slightly up
Gold is trending lower
The loonie is up against the US dollar