Energy stocks- specifically oil- put a damper on today’s meager market gains. The price of oil dropped another 3.3% settling below $29 a barrel. The International Energy Agency, which advises industrialized countries on energy policy, said the overstock of oil would last until at least the end of this year. The IEA said the global oil demand fell to a one-year low in the last quarter of last year. The International Monetary Fund said it still has concerns about the global economy, which caused it to reduce its overall growth forecast for the next two years. This is its third cut to global growth forecasts in less than a year.
IMF economist Maurice Obstfeld told CNBC’s “Worldwide Exchange-”
“They’re facing continuing challenges from low commodity prices, in particular oil prices” and geopolitical tensions in some countries. The U.S. is also behind the downgrade, Obstfeld added, citing two main points: “The very strong strengthening of the dollar, which has been putting pressure on manufacturing and trade, … and the response of investment in the energy sector, associated with low oil prices.”
Here are the final numbers from Tuesday, 1/19/16 on Wall Street.
Dow Jones Industrial Average: 16,016.02 (+27.94/ +0.17%)
NASDAQ: 4,476.95 (-11.47/ -0.26%)
S&P 500: 1,881.33 (+1.00 / +0.05%)