LOC16:08
13:08 GMT
KUWAIT, Oct 20 (KUNA) -- Current fluctuation of oil prices is attributed to
prevailing doubts whether Europe has succeeded in resolving the financial
crises, namely that of the sovereign debts of some European Union member
states, said the Global Investment House (Global or GIH) in a report released
on Thursday.
September witnessed unstable prices of the crude with attention of the
concerned quarters, namely the investors, pinned to the European debts crisis,
amid forecast drop of demand for oil in the continent.
European industrial indexes, for the first time since two years ago, turned
bearish, particularly after Greece declared it was defaulting on its debts and
payment of dues in the last quarter of this year.
Global forecast tremendous pressure on the oil prices with new negative
news about cut of the credit rating of other EU states, namely Spain and Italy.
US Federal Reserve's prediction of further global economic sluggishness
boosted anticipation of greater effects on the prices of oil.
Projected high demand for oil is expected to be from China, despite
indication of drop of industrial activities, in September. Moreover, fall of
manufacturing industries in the europe zone, for the first time since three
years ago, would also boost the negative anticipations about the global demand
for energy.
Global foresaw no hike of the demand due to the unstable prices.
The world demand for oil amounted to 87.8 million barrels till the third
quarter of 2011. It is expected to drop 400,000 barrels per day in the end of
the year, according to OPEC studies. (end)
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KUNA 201608 Oct 11NNNN