Falling oil prices provide relief for freight rates

Oil prices fell further when the International Energy Agency (IEA) announced on Friday, December 12, that it has cut its outlook for 2015 global oil demand growth by 230,000 barrels per day on lower expectations for the former Soviet Union and other oil exporting countries.
 
As of Friday, Brent crude oil prices came down to $63 per barrel, hitting the lowest level since July 2009. Oil prices have been decreasing since July this year due to the surge in shale oil production in the US, which is the world's biggest oil consuming country. Accordingly, freight prices are expected to soften in the coming period in line with the decrease in oil prices, thereby providing much-needed relief for the Australian iron ore miners amid weak iron ore prices.