MARKETS

Inventories and demand down as $40 becomes a target

A poor inventory report in the US has been the major impetus behind a sharp rise this week with stockpiles falling by 1.4 million barrels to 285.7 million, the sixth consecutive drop. However, there is light at the end of the tunnel with the International Energy Agency (IEA) predicting a drop in demand will pull prices down to US$40.