Arab Today, arab today stock markets slide as oil price plumbs 2008 low
Last Updated : GMT 22:20:05
Arab Today, arab today
Arab Today, arab today

Stock markets slide as oil price plumbs 2008 low

Arab Today, arab today

Arab Today, arab today Stock markets slide as oil price plumbs 2008 low

Frankfurt's DAX index sank 1.5% in morning trade
London - AFP

Global oil prices tanked on Friday close to seven-year lows on oversupply woes, sparking a fresh wave of selling across European stock markets as panicked investors fled the energy sector.

Crude, which has slumped since OPEC left its oil output at a record high level last week, took another tumble after the International Energy Agency (IEA) said oversupply would persist until late 2016.

In response, Brent crude for January collapsed to $38.90 per barrel -- a level last seen on December 31, 2008, during the global financial crisis.

US benchmark West Texas Intermediate (WTI) for delivery in January dived to $36.12 -- last witnessed in February 2009.

"Comments from the IEA have ... seen both WTI and Brent fall aggressively, after they (indicated) that the unrelenting supply would see oil prices lower into the new year," said analyst James Hughes at trading firm GKFX.

Traders were also positioning themselves before the weekend and next Wednesday's expected interest rate hike from the US Federal Reserve.
The prospect of higher interest rates boosts the greenback, which in turn makes dollar-priced crude more expensive for buyers using weaker currencies. That tends to weigh on oil demand and pull prices lower.

"Oil prices have fallen heavily again this morning as the commodity rout continues to dominate the week," Hughes told AFP.

"Prices have tumbled yet again as many investors try and position themselves ahead of the weekend, and also next week’s key Fed decision."

Oil has collapsed by more than 10 percent since the 13-nation Organization of the Petroleum Exporting Countries decided against cutting output despite plunging prices, weak global demand and the stubborn supply glut.

That has sent shockwaves across world equity markets because low oil prices slash profits for energy majors like BP, Total and Royal Dutch Shell.

Nearing midday on Friday, the London stock market shed 1.0 percent, Frankfurt sank 1.5 percent and Paris was down 1.2 percent in value.

Shell's 'B' shares dropped 2.31% to 1,498 pence in London
© AFP Carl Court

BP's share price slid almost 1.5 percent to 345.80 pence and Shell's 'B' shares dropped 2.31 percent to 1,498 pence in London.

French giant Total saw its stock sink 1.57 percent to 42.41 euros in Paris.

- Asia mostly slides -

Most Asia markets also sank again on Friday at the end of a painful week for global equities defined by a commodities rout that analysts warn could continue for some time.

The Fed is expected next week to deliver its first interest rate increase in nine years.

"It's difficult for shares to move much ahead of the Federal Reserve meeting," Hitoshi Asaoka, a senior strategist at Mizuho Trust & Banking Co. in Tokyo told Bloomberg News.

"Oil prices haven't stabilised yet so we can easily enter a wait-and-see mood. I expect the market to continue to be unstable."

With the global economy struggling, China's growth subdued and the dollar tipped to strengthen further, oil is expected to remain beaten down until possibly 2017.

Prices were hurt further by OPEC's announcement Thursday that its collective production rose in November to its highest level in three and a half years.

The figures are "reinforcing consternation that the global oil market is going to remain oversupplied for a longer time", said Bernard Aw, market strategist at IG Markets in Singapore.

Shares in Hong Kong sank 1.1 percent -- a seventh-successive loss -- with CNOOC and PetroChina leading energy firms lower.

On other markets Shanghai slipped 0.9 percent, Sydney was 0.2 percent lower and Seoul sank 0.2 percent. However, bargain-buying and a weaker yen helped Tokyo rally.

- Key figures around 1200 GMT -

London - FTSE 100: DOWN 1.0 percent at 6,026 points

Frankfurt - DAX 30: DOWN 1.5 percent at 10,441

Paris - CAC 40: DOWN 1.2 percent at 4,578

EURO STOXX 50: DOWN 1.3 percent at 3,227

Tokyo - Nikkei 225: UP 1.0 percent at 19,230.48 (close)

Euro/dollar: UP to $1.0957 from $1.0939 late in New York on Thursday.

Dollar/yen: UP to 121.70 yen from 121.62 yen

burs-rfj/bcp/boc

 

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 stock markets slide as oil price plumbs 2008 low Arab Today, arab today stock markets slide as oil price plumbs 2008 low

 



Arab Today, arab today
Arab Today, arab today Accessories designer reveals her new collection

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection
Arab Today, arab today Laptop ban sparks ire

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today AT&T, Verizon join Google ad boycott

GMT 10:30 2017 Thursday ,23 March

AT&T, Verizon join Google ad boycott
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemeni official warns education is under threat

GMT 12:03 2017 Tuesday ,14 March

Yemeni official warns education is under threat
Arab Today, arab today Number of unwedded girls amounts to 2.5m

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked
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 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 Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Donia Abdel Aziz participates in "Game of Silence"

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"
Arab Today, arab today Mexico threatens to ditch US corn imports

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 07:39 2017 Monday ,20 March

Dalia Mustafa believes in the presence of ghosts

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection

GMT 16:41 2017 Monday ,20 March

Preserving the memory of glaciers

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 13:11 2017 Tuesday ,21 March

Web-based counseling lowers blood pressure

GMT 10:18 2017 Tuesday ,21 March

Kuwait's tourism industry to be worth

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 22:39 2017 Thursday ,09 March

Zuhair Murad presents his new collection "Resorts"
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