US open: Oil futures slide as retail receives a boost from latest figures

US stocks were declining early on Friday as crude oil futures slid following the IEA’s announcement that it will cut its global oil demand forecast for the fourth time in five months.

At the start of trading, the Dow Jones Industrials, S&P 500 and Nasdaq were all trading in the red.

West Texas crude futures slipped below $60 a barrel late on Thursday and were dropping below $59 early on Friday.

The decline continues amid low supply levels and news earlier today that IEA will slash its global demand forecasts next year by 230,000 barrels per day to 900,000 barrels per day on the expectation of lower fuel consumption in Russia and other oil-exporting countries.

Senior US economist at Capital Economics Paul Dales said: “The latest fall in gasoline prices will weigh on overall producer prices in December and probably January too.”

The retail sector was given another boost after a rise was reported in the University of Michigan measure of US consumer confidence in December to a new seven-year high of 93.8 from 88.8 in November with a consensus expectation of 89.5.

Dales noted: “Confidence is clearly being boosted by record high equity prices, the breakneck pace of job growth and the plunge in gasoline prices.”

Home Depot, Microsoft, Nike, Walt Disney and Wal-mart were all rising following these positive figures in the retail sector.

Meanwhile, Cabot Oil & gas, Cimarex Energy and Spectre Energy were all falling in alignment with the declining oil futures.