ECB official Peter Praet hints at quantitative easing amid falling oil prices December 31, 2014 The European Central Bank's (ECB) chief economist has hinted quantitative easing could be on the way, as plunging oil prices threaten to derail price expectations in the embattled eurozone. Peter Praet told German Newspaper Boersen-Zeitung the glut in global oil supply meant inflation rates were likely to remain negative throughout "a substantial part of 2015", something [...]
Oil price slides further as China manufacturing contracts December 31, 2014 China's manufacturing sector contracted for the first time during December, new figures published this morning showed. HSBC/Markit's China manufacturing PMI fell to 49.6, below the 50-mark which indicates a fall, and down from 50 in November. However, the figure was revised up from an initial "flash" reading earlier in the month, which was 49.5. Last [...]
Saudi Arabia oil minister Ali al-Naimi: We won’t cut production to prop up prices December 22, 2014 Saudi Arabia’s oil minister has insisted the country will not cut oil production to prop up prices, despite the key commodity collapsing by a further 25 per cent in value over the past month. “Whether it goes down to $20, $40, $50, $60, it is irrelevant,” Ali al-Naimi said yesterday. “We are [...]
Further oil price drop could pose financial threat to UK stability December 22, 2014 Financial market regulators have warned that if the fall in oil prices were sustained, it could be a problem for the UK’s financial stability. Falling prices could impact on the ability of some businesses to service their debt. Some such businesses are US oil and gas exploration firms, according to the minutes of [...]
Rouble rallies as oil price continues its rise December 22, 2014 The price of oil continued to rise this morning, lifting the rouble with it. The price of Brent Crude, which has dipped below $60 in recent days, jumped 2.2 per cent to $62.68 per barrel after Saudi Arabian oil minister Ali Al-Naimi said at a conference that the recent fall in prices was "temporary". Al-Naimi [...]
Oil groups taking action to help North Sea firms as prices continue to fall December 22, 2014 The leader of Aberdeen City Council has called on the Scottish and UK governments to attend a summit on the “emerging crisis” in the North Sea oil industry. Jenny Laing announced yesterday that the council was aiming to bring together governments, trade unions and industry bodies to develop a strategic plan to save jobs in [...]
Why have oil prices dropped? Gulf states blame non-Opec members December 21, 2014 Arab Gulf ministers have argued that tumbling oil prices are not the fault of the Organization of the Petroleum Exporting Countries (Opec), and maintain that their countries will not cut oil production to counteract the fall. The permanent, intergovernmental organisation comprises 12 member states, many of which are in the Middle East. The group [...]
Fitch cuts Venezuela’s credit rating to ‘CCC’ on oil price plunge December 18, 2014 Credit rating agency Fitch has slashed Venezuela's credit to 'CCC' on plunging global oil prices, which means "default is a real possibility." It said the country's economy has little room to manoeuvre in the face of crumbling global oil prices, which has eaten away at its main source of income. Venezuela's oil dependent economy requires an [...]
Putin: Effects of the rouble crisis will “last two years under the most unfavourable circumstances” December 18, 2014 Buoyed, presumably, by the triumph of being named Russia’s man of the year for the 15th year in a row just hours ago, this morning Vladimir Putin climbed on to the podium to give a press conference to 1,300-odd journalists in what has become known as his answer to a “state of the nation address”. [...]
Nicola Horlick: What effects will the fall of oil prices actually have? December 17, 2014 The precipitous fall in the oil price has resulted in sharp declines in share prices around the world, but the long-term effect of a lower oil price is to reduce the amount of cash in the pockets of oil producers and increase the amount available to consumers to spend. Overall, this is positive for markets [...]