The price of oil for the first time since 2009. Fell below 40 dollars. – Banker

             After alarming data on the Chinese economy, the price of oil in the US fell Friday briefly below 40 dollars. per barrel (39.86), the first time since the crisis in 2009. At the close of trading the price of oil US crude was 40.45 dollars. per barrel.
           

 

Oil prices fell by almost 60 percent. since the summer of last year and more than 34 percent. in the last three months. Quotations of raw materials fell last continuously for eight consecutive weeks; the longest such streak since 1986.

 

As arrives unkind information on the state of the Chinese economy is growing concern that demand will fall dramatically in the country, which is the second-largest oil consumer in the world. Investors fear that both China and other major emerging markets will reduce imports.

 

The price of oil also affected by rising production in the United States; in August, an American production of the raw material was 11 percent. higher than a year ago.

 

The rout in stock markets also affected the prices of other raw materials, while on Friday it turned out that the industrial sector in China shrank in August at the fastest pace in more than six years. Markets react in addition to a series of turmoil in China, as continued even after the intervention of Beijing declines in stock markets or unexpected depreciation of the yuan.

 

On Friday fell as a result of the listing on European stock exchanges, the US and Tokyo, and especially hurt the energy sector; more than 4 per cent drop in the Shanghai stock market meant that these markets have lost about 2 percent.

 

lost also the motto of emerging markets; Some of these countries desperately trying to lower the value of their currencies to potanić export costs and gain a competitive advantage. So it is perceived Beijing’s decision on the devaluation of the yuan. Investors are worried that this will lead to unfavorable market currency wars – says the AP.

 

Experts predict that the trend in the oil market persists; current declines is the longest such series since the late 80s, when oil prices fell in five months of about $ 30. per barrel to 10 dollars. OPEC increased production time to regain market share, which performed well in countries non-members of the cartel.

 

Although the current price slump alarmed OPEC, however, there is no signal yet that the cartel had the intention to change its calculated to defend market share in a policy of maintaining a very generous production quotas.

 

July 30 Russian Energy Minister Alexander Nowak, and Opec secretary general Abdullah al-Badri said they will not reduce oil production, despite the fall in its prices. (PAP)

 

Fit / mc /