Corporation News

Futures of light crude oil with delivery in November closed at a level of 64.15 dollars for a barrel today in New York Exchange registered a fall of 3.69 dollars or 5.4 percent.

For the week “black gold” lost 11.1 percent of its value.
At the decline were fears a serious contraction in demand due to slowing global economic growth. Today the organization of petroleum exporting countries decided to reduce its production for the first time in nearly two years, but this failed to stop the decline in prices.

The yield will be reduced by 1.5 million barrels per day from November decided on today’s meeting of oil ministers of the countries of the cartel. The current quota is 28.8 million organization barrels of oil per day.

The last time the trust decided to reduce production was in December 2006, the abbreviation 500 thousand barrels per day with effect from February 2007 Later that year the quota was increased after the price of raw materials increase.

Organization of petroleum exporting countries decided to reduce its production for the first time in nearly two years in order to stop the fall in prices, reported Bloomberg.

The yield will be reduced by 1.5 million barrels per day from November decided on today’s meeting of oil ministers of the countries of the cartel. The current quota is 28.8 million organization barrels per day.

“The demand is significantly less than supply, this is the reason for the decision,” said the oil minister of Saudi Arabia Ali al-Naimi.

Oil has become cheaper by 57 percent from the record reached on July 11 due to the expansion of the crisis in financial markets and the increasing redundancy of jobs and reduced fuel consumption.

Following the decision of the countries exporting oil price of oil fell by 7.1 percent.

“Ward used all their resources,” commented Robert Lolin brokers. “Given the poor economic prospects and free fall in production this decision is not enough.

By the International Energy Agency forecast on Oct. 10 that demand in developed countries will decrease by 2.2 percent this year, which will delay the growth of world consumption by 0.5 percent.

Saudi Arabia will cut its production by 466 thousand barrels per day, Iran - with 199 thousand, Kuwait - with 132 thousand, United Arab Emirates - by 134 thousand barrels, and Venezuela - by 129 thousand barrels per.

Possibly in December to be decided to further reduce production depending on the reaction of the markets, said the oil minister of Qatar Abdullah bin Hamad al-Atiya. Such a view shared and analysts Adisan Armstrong, as has been possible further reduction in yield with 500 thousand barrels per day.

Oil with delivery in December rose a less expensive after the announcement of the decision by 4.79 dollars or 7.1 percent, to 63.05 dollars for a barrel of oil.

The last time the organization of petroleum exporting countries decided to reduce production was in December 2006, the abbreviation 500 thousand barrels per day with effect from February 2007 Later that year the quota was increased After the price of raw materials rises.

Bloomberg recalls error of the countries exporting oil 11 years before when countries were fighting on the cartel quotas after oil was cheaper by 28 percent for 10 months in the emergence of the Asian financial crisis. Meeting in Jakarta in November 1997 the quotas were increased regardless of the crisis that delayed Asian economies and reduce consumption of oil. Prices decreased by more then 44 percent until December 1998 and fell below 11 dollars for barrel.

“Basis for this meeting is that it shows the determination and cohesion to cope with the decline in demand and not repeat the mistake of the Asian crisis,” commented David Kirsh, a consultant at PFC Energy.

Member countries of the oil exporting countries lost 700 billion dollars due to cheapen oil The data on employment pressed U.S. state indices, the serial drama data on the labor market in the U.S. Over 80 percent of Russian companies feel threatened by financial crisis Middle East oil fell to 122.10 dollars for a barrel U.S. shares of the green, S&P 500 by 10 percent weekly rise The price of oil to a record for the last 17 years fall Another 62 thousand Americans without job in June, unemployment was 5.5 percent Dynamic week of oil market U.S. shares erased their initial gains. The outlook for long-term credit rating of Russia is “negative” and Gold-currency reserves of Russia decreased by 50 billion dollars 2008 - year of the bear market, world drop in economic growth Shares of the week - storms Wells Fargo & Co. Bernanke: Inflation will be reduced World Bank gives USD 100 billion to developing markets International Monetary Fund: The financial crisis has not yet been completed, real estate prices continue to fall Rescue plan for the economy of Australia Oil remained at low levels to the limit of 100 dollars Price of oil will not stop - marks a record after record Steep sales drop for US carmakers Steep sales drop for US carmakers Again bank failure in U.S. Fifth consecutive decline for exchanges in Asia Adisas withdraw part of its production in China Auctions of stock and commodity markets have supported gold Merrill Lynch strongly disappointed investors off assets for $ 9.4 billion dollars Central bankers: Asia deal with crisis Australia with the weak economic growth of eight years Another bank failure in U.S. The Bank Silver State closed its banking business Opec agrees record oil output cut Financial crisis hit and telecom sector Strong data on the labour market in Germany New tumbled in sales of cars in Europe The costs of the crisis in the world could reach 2.8 trillion dollars McCann against Obama - how will affect the economy Serial record for price of crude oil The euro fell against the U.S. dollar. Avoid the currencies set a high income under pressure Inflation in Europe at lower level than nine months. Europe is in recession officially Rosneft is planning investments in Eastern Europe Japanese vehicle sales plunge 22% Online web searches in October Fuel prices drop, but airfares don’t Russia and Venezuela strengthen their cooperation in oil and gas sector UN: High prices of properties violate human rights to housing Expect to 30% decline in housing prices in Spain Bought Subdivisions and of Lehman in Europe and the Middle East Refinancing for less Russian export duties on oil up with 25% Daimler refuses to buy Chrysler Dow Jones wiped their initial gains Lehman Brothers bankruptcy Housing in Moscow more expensive by over 25% in first half of year

Tags: barrel, barrels, crisis, dollars, economy, financial crisis, Markets, oil, petrol

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