What’s Behind the Slump in the Oil Price? 85% Weak Demand

(Bloomberg) -- Brent crude had lost $21 a barrel at Tuesday’s close from its high this year on Oct. 3. What’s driving it? Bloomberg Economics estimates weaker demand accounts for $18 of the decline, the rest is supply. The support to global economic growth from cheaper oil is likely to be small because demand-led shocks have a different impact on the world economy from supply-led shocks.

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