Arab Today, arab today oil price slump sends european stocks spiralling lower
Last Updated : GMT 22:03:31
Arab Today, arab today
Arab Today, arab today

Oil price slump sends European stocks spiralling lower

Arab Today, arab today

Arab Today, arab today Oil price slump sends European stocks spiralling lower

Crude oil
London - AFP

Global oil prices tanked Friday to fresh five-year lows, sending European stocks sliding, after a gloomy crude demand downgrade from the International Energy Agency and more weak Chinese economic data.
US benchmark West Texas Intermediate (WTI) for January delivery plunged to $58.80 per barrel -- the lowest level since May 20, 2009 -- having already closed under the psychological level of $60 on Thursday.
Brent crude for January dived to $62.75 in morning London deals, striking a low point last witnessed on July 16, 2009.
The oil market -- which has shed almost 50 percent since June -- plumbed the latest lows after the Paris-based IEA slashed its 2015 demand outlook, despite plunging prices.
Demand is set to grow by 0.9 million barrels a day to reach 93.3 million barrels, 230,000 barrels less than the previous forecast, the IEA energy watchdog said in a report.
"Oil prices continue to dominate the markets as the IEA lowered oil demand expectations for the fourth time in five months," said IG analyst Alastair McCaig.
- Energy sector hit -
This week's dizzying drop in oil prices weighed heavily on Europe's energy sector on Friday.
In late morning deals in London, the benchmark FTSE 100 index fell 1.42 percent to 6,370.01 points compared with Thursday's close.
The CAC 40 in Paris shed 1.34 percent to 4,169.52 points and Frankfurt's DAX 30 lost 1.14 percent to 9,750.78.
"The FTSE, having a far greater weighting to the energy and commodity sector, has suffered more than most," added McCaig.
In foreign exchange, the ruble sank Friday to record lows on the back of sliding oil, despite Russia's central bank hiking its interest rate the day before in an attempt to halt the currency's plunge and the resulting price rises.
The ruble fell to record levels of 71 against the euro and 57 against the dollar as the Moscow stock exchange opened, before rallying slightly.
The euro meanwhile drifted higher to $1.2433 from $1.2410 late in New York on Thursday.
"Out of the worldwide indices, the FTSE has been the biggest victim of the oil-price crash, as its energy sector capitulates under the pressure of Brent crude’s decline," said Spreadex analyst Connor Campbell.
Shares in oil services company Petrofac topped the FTSE 100 losers, shedding 4.51 percent to 691.31 pence.
Energy explorer Tullow Energy dived 3.25 percent to 360.7 pence, while oil major BP slid 2.13 percent to 390.3 pence.
Back in Paris, shares in French oil and gas giant Total dropped 1.59 percent to 41.895 euros.
Slumping oil prices weigh on the energy sector because they eat into company profits.
At the same time, however, cheaper crude also help stimulate economic growth in the longer term.
"While commodities are in free fall, the major indices will take a beating in the short term -- but looking ahead should help lift the ailing economies out of the mire," added analyst Mike McCudden at broker Interactive Investor.
- Oil down almost 50% -
The oil market has now collapsed by almost 50 percent in value since June, weighed down by plentiful supplies, the stronger dollar and weak demand arising from the struggling global economy.
Losses accelerated in late November after the influential OPEC oil producers' cartel decided to leave its crude output ceiling unchanged, despite oversupply and booming US shale energy production.
The market had already struck fresh lows Wednesday after OPEC also revised down its forecast for global crude demand growth next year.
OPEC said demand for its crude would fall to 28.92 million barrels a day next year, the lowest level since 2003 and at least one million barrels less than it is producing now. Yet it showed no sign of cutting production.
Markets were also hit Friday after China said industrial output expanded at its slowest pace in three months in November, while fixed asset investment, a measure of government spending on infrastructure, was also easing.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oil price slump sends european stocks spiralling lower Arab Today, arab today oil price slump sends european stocks spiralling lower

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday