Oil co. shares fall on oversupply, weak demand

AP News
Posted: Dec 10, 2014 12:46 PM

Energy industry shares are falling as oversupply and weak demand drag down the price of oil.

Oil prices have been falling for some time, but new industry reports suggest the situation could worsen. OPEC slashed its estimate of how much crude oil it will need to produce next year. And the U.S. Energy Department recently lowered its forecast for gasoline prices yet again.

That helped send the price for U.S. benchmark oil down below $61 a barrel on Wednesday — a new five-year low.

Industry giants BP and ConocoPhillips both lowered their spending forecasts for drilling this week.

The mounting pressure sent shares of most major oil companies down in trading Wednesday, including declines of nearly 3 percent for Exxon Mobil Corp., ConocoPhillips and Chevron Corp.