U.S. stocks opened lower as the International Energy Agency warned worldwide demand for oil is slowing. This, at the same time, as oil producing countries are ramping-up production or keeping it at current levels. Oil prices have fallen to fresh seven year lows in recent days after OPEC decided last week to leave production unchanged. The price crash was exacerbated by the 12-member oil producing group, which is led by Saudi Arabia, deciding not to cut production to support prices. A move largely seen as designed to put pressure on rivals, particularly shale oil producers in the U.S. Oil prices have tumbled over the last 18 months, from a high of $114 last June to their current levels on a glut in supply outpacing demand. On Friday, Russian’s deputy finance minister issued a stark warning of $40-$60 oil ‘for the next seven years,’ according to Reuters. Recently, big oil companies, like Chevron (CVX) and Conoco Phillips (COP) have slashed their budgets and focused instead on short term projects to reign in capital spending.
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