A surplus of oil was posted and it is expected that this success will be carried on next year. This was characterized as a record. In addition the International Energy Agency mentioned that this will put pressure on the price of oil.
The surplus is estimated at three billions. Furthermore the research reveal that European stock market went down while the stock broking rate went down by 1%. The slump in prices affected negatively not only Paris and Frankfurt but also the Asian stock broking Markets. Except from the above the stock market of Hong Kong went down by 2.2.%.
Due to the rollback in products and after the reduced demand by China, the investors decided to take measures for the developers of Eurozone. Additionally, the Company went down by 6% in French Market. Craig Erlam, an important market analyst, indicated that the market was ready to rise after five satisfactory weeks for the investors. The development of Eurozone was slowed down by 0.3% in the first quarter. The formal survey data mentioned that after the fall of Germany, France found the space to be expanded and improve her economy.
The leader economist of IHS mentioned that the slower increase of GDB in Eurozone will strength the assurance that EKB will provide more motivation at the December’s meeting.
The price of oil redoubled the last eighteen months after the nations of OPEC refused to decrease the production and in conjuction with the oil by USA was created over abundance. Specifically, the price of the Brent crude oil went down by 36 cents and now costs 43.68$ per barrel while the USA crude oil went down by 0.1 cents. Its price now is 40.55$ per barrel.
Despite the fact that the lowest price of oil will lead to the decrease of production in USA, next year ICA announced that it will take a few months to clear the glut. The world market of oil is estimated at 50$ per barrel. The heavy demand in a five-year period amounts to two million barrels per each day. In conclusion, the worldwide increase in oil’s demand is expected to be reduced in 2016.