Oil continues its slide

Crude oil continued to fall for a third straight day Tuesday with Brent crashing to $37.35/bbl and below Nigeria’s budget benchmark following weakening demand for gasoline.

Traders also say persistent doubts on whether crude producers will be able to reach an agreement to rein in a worldwide supply glut dragged on the market.

Data from the US show that for the first time since 2014, gasoline demand fell to 8.7m barrels a day, the first year on year decline in two years according to the IEA.

Oil and gas giant Shell is also said to have withdrawn an application to drill in Norway’s Arctic as the oil-price collapse forces it to reconsider spending plans already stretched by its acquisition of BG Group Plc.

The decision reflects Shell’s desire to “optimize” its portfolio following the BG deal, Europe’s biggest oil producer said Monday in a statement.

In a “challenging” market Shell is focusing on operations that may generate income sooner than discoveries in the Barents Sea, where Norway is auctioning the licenses, the company said.