Epic Research Investment Adviser keeping track of the market movements and special happenings which may affect the market very closely. As you all heard in the news that the oil prices goes down to the lowest in past four years, it not only affect the commodity market but also a factor of changes in the currency market.
As we all knew oil isn’t found everywhere, perhaps it is one of the most important natural resource in the world. No country can run without it and they require it for almost every work like – to travel, for domestic purpose, to run technology, automobiles and for lots of things. Thus the countries having oil refineries export it to the other nations. This doesn’t make such countries the only economy influencer but make them a key player in the world economy.
What is in the News?
Organization of Petroleum Exporting Countries (OPEC), cut down the prices of crude oil. There is a drop was seen on the prices. In a meeting of the OPEC member countries, it was announced that they would maintain the level of production high, inspite of the fact that the member countries decided to push a cut in the production to boost the prices. After the announcement on the last month, few drops in the oil prices have been seen.
As some of the Gulf countries are concerned about their economies if the production is same but all states are not negative. OPEC’s decision of not dropping the production showed its confidence on those members of the organization which are having good financial reserves. If such Gulf states cut the production the process may damage the market condition.
Therefore, it might be understood that OPEC’s opinion and the decision of Gulf states affect the crude oil presence and market conditions. Brent crude settled at below $62 a barrel on Friday after the world energy watchdog forecast even lower prices on weaker demand and larger supplies next year.
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