An August report revealed that the price of oil was at a six-year low thanks to an upward movement in reserve stockpiles, and now a new report has shown that oil prices are the lowest they have been in seven months.
It has also been revealed that the International Brent crude benchmark is at the lowest it has been since January of this year.
According to a report by the Financial Times, on Wednesday 19th August, a representative of The International Energy Agency let it be known that U.S. oil reserves were up by 2.6m barrels, suggesting that the theory of many industry analysts that oil stocks would show a decline may have been off the mark.
It was also revealed that there was a spike in oil consumption during the peak holiday season thanks to the lower price of petrol, but this was not enough to counter a large increase in imports.
Speaking to The Financial Times, Citi analysts commented that it was ‘a conceivable reality’ that U.S. oil could reach a $32 low, which is equal to the prices reached at the peak of the financial crisis in 2008.
There are also rumours that the growing health of the Chinese economy could further push down the price of oil in Western nations.