Why Falling Gas Prices Have Further to Go
Published at | Updated at
iStock/Thinkstock(NEW YORK) — There’s good news about the cost of energy: It’s getting cheaper.
The cost of oil has been falling for weeks on global markets. West Texas crude is now just under $91 a barrel.
The International Energy Agency has once again cut its oil demand forecast for 2014.
“The recent slowdown in demand growth is nothing short of remarkable,” the IEA says in its latest report, out Thursday. “While demand growth is still expected to gain momentum, the expected pace of recovery is now looking somewhat more subdued.”
Compared with August of last year, global supply rose more than 800,000 barrels a day.
Rising U.S. oil production is one important factor keeping a lid on the cost of oil. U.S. gasoline prices are expected to continue the downward trend this fall, analysts say.
Follow @ABCNewsRadio
Copyright 2014 ABC News Radio