NEW YORK (AP) – U.S. stocks are skidding Tuesday morning after the International Energy Agency said it expects slower growth in demand for oil this year. That’s pushing the price of oil down and sending energy companies solidly lower. Banks and phone companies are also falling.
KEEPING SCORE: The Dow Jones industrial average gave up 176 points, or 1 percent, to 18,149 as of 10:07 a.m. Eastern time. The Standard & Poor’s 500 index fell 23 points, or 1 percent, to 2,136. The Nasdaq composite lost 40 points, or 0.8 percent, to 5,172. After two months of quiet trading, stocks are on track for their third big move in a row, after a big drop Friday and a rally on Monday.
OIL: Crude prices fell Tuesday after the Paris-based International Energy Agency said it believes global demand for oil will grow by 1.3 million barrels a day in 2016. That’s 100,000 barrels below the previous forecast. The biggest reason for the change is a more pronounced economic slowdown during the third quarter of the year. The price of oil has plunged over the last two years as an enormous supply glut built up while growth in demand slowed.
U.S. crude fell $1.40, or 3 percent, to $44.89 a barrel in New York. Brent crude, the benchmark for international oil prices, slid $1.10, or 2.2 percent, to $47.21 a barrel in London.
Exxon Mobil sank $1.34, or 1.5 percent, to $85.95 while Chevron shed $1.66, or 1.6 percent, to $100.59 and Baker Hughes lost $1.58, or 3.2 percent, to $48.12.