Oil prices fell below $70 a barrel for the first time in three years, and are expected to keep dropping. Weak demand in China, thanks to the country’s slowing economy, and expanding production in non-OPEC countries, notably the US, will continue “downward pressure on the price,” the head of the International Energy Agency said, offsetting production shutdowns in the Middle East and geopolitical tensions, both of which usually prop up prices. The issue has political implications ahead of November’s US presidential election, Semafor’s climate & energy editor writes today: Both candidates want to reduce gasoline prices, but the low cost of oil reduces the incentives for companies to make the investments necessary to boost supply. |