TORONTO – The Toronto stock market closed sharply lower as oil retreated well below the US$60-a-barrel level following another indication of weakness in the world’s second-biggest economy and a revised forecast from the International Energy Agency.
The S&P/TSX composite index dropped 173.22 points to 13,731.9.
The IEA cut its forecast for global oil demand growth by 230,000 barrels a day, to 900,000.
That revision and data showing Chinese industrial production declined for a third straight month in November sent January crude in New York down $2.14 to a fresh, five year low of US$57.81 a barrel. Crude has retreated 18 per cent this week and analysts are unable to say where the price bottom will be.
The Canadian dollar fell 0.33 of a cent to 86.42 cents US.
U.S. indexes fell heavily as the Dow Jones industrials plunged 315.51 points to 17,280.83, the Nasdaq gave back 54.56 points to 4,653.6 and the S&P 500 index was down 33 points at 2,002.33.
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