Oil slumps over 3% on U.S. rail agreement, demand concerns

Oil futures fell over 3% to a one-week low on Thursday on a tentative agreement that would avert a U.S. rail strike. The International Energy Agency said this week that oil demand growth would grind to a halt in the fourth quarter. A strong dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies. Wall Street indexes (.SPX), (.IXIC) were in the red while the dollar (.DXY) held near the 20-year high it hit on Sept. 6.

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