Oil demand decreases as economy slows down

On Friday, the prices of the oil fell to the lowest point in five months due to economic slowdown and investors are worried that it will lead to low demand for the energy.

James Cordier, portfolio manager of OptionSellers.com, said that the attention of the oil market will not be distracted from lowering economy and the decrease in the demand of the products. Cordier said, “What will win out is that the economy is weakening faster than expected, and that will continue to be psychologically bearish for oil.”
Two months ago, in July 11, price of the oil was recorded as high as $147.27 a barrel, and presently oil prices have fallen more than $40 a barrel. The fall mainly has come due to cut in demand from the economy.

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