Oil producers face price war over slowing global demand

The rout in world crude markets has gained momentum and may not stop as OPEC members are showing little willingness to cede market share to North American oil suppliers in the face of slowing global demand. In New York, West Texas Intermediate fell $3.61 a barrel to $82.13 (U.S.) in trading in New York, while the leading international benchmark, Brent, slumped by $2.65 a barrel to $86.24. Both prices have plunged more than 20 per cent since the highs in June in the face of rising global production and unexpected economic weakness in key markets around the world. The sharp drop in oil prices has battered the oil-heavy Toronto market, with the S&P index losing 190 points, or 1.3 per cent, at 14,036.68 on Tuesday. The index was dragged down by across-the-board losses among oil and gas producers, including companies such as Encana Corp. off 6.7 per cent; Penn West Petroleum Ltd. losing 7.4 per cent, and Talisman Energy Inc. down 8.6 per cent. The oil index slumped to a 14-month low and the TSX has dropped 10.4 per cent since Sept. 3, according to theglobeandmail.com