The demand for oil falls because of a slowdown in the global economy

The price of “black gold” again sank.

Попит на нафту падає через сповільнення зростання світової економіки

The price of oil has dropped, says the Express online.

The price of “black gold” of Brent crude fell by 0.35% ($ 71,72), WTI – 0.37% ($ 61,34). The energy information administration of the USA published a report which raised the Outlook of oil production in the country in November by 0.3 million barrels to a record 12,06 million barrels a day.

The price of oil is falling also due to increased production in Saudi Arabia. Under pressure of the administration of Donald trump, who repeatedly demanded from OPEC “to reduce prices”, and then threatened Saudi Arabia with consequences for the murder of journalist Jamal Khashoggi, the Kingdom increased supply from 9.8 to 10.7 million barrels per day.

But it is not excluded that at the meeting of the monitoring Committee of the OPEC+, which will take place on November 11, to discuss the possibility of reducing oil production in the next year due to a significant reduction in demand due to a slowdown in the global economy.

Stocks mostly in the red. The Dow Jones fell by 0.07% (26 126), S&P 500 – 0.26% (2 806), the NASDAQ 100 – 0.44% (7 180). Germany’s DAX fell 0.56% (11 573), Dutch AEX – 0.19% (528), Japanese Nikkei 225 – 0.56% (22 453).

Uncertainty indices adds to the geopolitical situation. Iranian banks have lost possibility to carry out international transactions using payment system SWIFT. It adds tension in the world.

By the way, in October recorded a record outflow of capital from emerging markets. According to the Institute of international Finance (IIF), it reached 17.1 billion. This is one of the worst monthly performance in 13 years. Most of the money left Chinese stocks. Investors invest money in more secure assets, in particular us securities.


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