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Oil Prices Fall Further After IEA Cuts Forecast for Global Demand

Oil prices fell further Friday after the International Energy Agency lowered its forecast for global oil demand next year.

Oil prices fell further Friday after the International Energy Agency lowered its forecast for global oil demand next year. The agency said global oil demand in 2015 will grow by 900,000 barrels a day, which is 230,000 less than previously forecast to 93.3 million. The IEA said, 'While demand growth is still expected to gain momentum in 2015 from 2014, the acceleration is now looking more modest than previously foreseen, in line with the ever-more tentative pace of the global economic recovery.' According to their report, several years of record high prices have ‘induced the root cause’ of the rout in oil prices in recent months. The agency also dampened expectations that the fall in oil prices will automatically be a boon for the global economy.

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