Oil Prices Drops To One-year Low


After experiencing its worst month since the financial crisis that happened ten years ago, oil prices are struggling at more than a one-year low.

This month, it has dropped by 21 percent, losing the returns that it was able to make throughout the year.

Both Frankfurt and Paris, the main share indexes in London, all sank. Also, Wall Street futures were pointing down after Chinese some data that was released on Friday led to a nervous Asian session.

This month has also seen the tech stocks suffered. Apple suffered its worse month in a span of a decade after it dropped by 18 percent.

Michael Metcalfe, the head of macro strategy at State Street Global Markets, stated: “Expectations at the start of the fourth quarter were for a melt-up in risky assets, but two of the biggest trends have been a reversal of some of the few returns we have seen this year, which have been in oil and in tech.”

He added: “Also the market seems to be going into the G20 meeting with very low expectations of a ceasefire in the trade war. That may very well be correct but politics has proved very hard to predict this year.”

The markets would likely be in for a volatile December once Donald Trump, the President of the United States of America, and Xi Jinpin, the president of China, fail to de-escalate their trade war at the discussions that are set at this weekend’s G20 meeting that will be held in Argentina.

Chinese data that was released on Friday also revealed that the growth in their vast manufacturing sector had slowed this November for the first time in over two years.

President Trump has sent mixed messages ahead of the summit as to whether there would be a ceasefire in the trade war between Washington and Beijing.

After making a lucrative profit from the tariffs that were imposed on China, he stated: “I think we’re very close to doing something with China but I don’t know that I want to do it.”

In the oil markets, crude was beginning to drop again having attempted to steady on news that Russia is increasingly convinced that it needs to reduce its oil output along with the Organization of the Petroleum Exporting Countries (OPEC).

OPEC and its allies are scheduled to meet in Vienna on the 6th and 7th of December. Both Brent and U.S. WTI crude were down by approximately 0.6 percent at $59.51(£52.99) per barrel and $51.38 per barrel respectively.


Comments are closed.