| From ft.com: When the oil price slipped below $120 a barrel earlier this week, the move was blamed on investors’ fears that slowing global growth was crimping demand.But that was only half the story. Just as important, is a large increase in supply from Opec, the oil exporters’ cartel, which is helping to ease the tight market.
Oil prices sank on Tuesday to an intraday low of $118 a barrel – a fresh three-month trough – almost 20 per cent below the all-time high hit last month of $147.27 a barrel.
The fall in oil prices has helped to trigger a broad commodities sell-off, with the Reuters-Jefferies CRB index, a global commodities benchmark, down 15.6 per cent from its July record. The index is, however, 27.9 per cent up on the past 12 months...... Full Article: Source |