Oil continues its downfall

The 2016 estimates for global oil demand based on China’s weakened economic expansion and raised forecasts for supplies outside the Organization of Petroleum Exporting Countries show gloom prospects. While non-OPEC supply is set to drop 600,000 barrels a day in 2016, Iran’s comeback could fill that gap by the middle of the year. As a result, world markets may be left with a surplus of 1.5 million barrels a day in the first half.

Oil sank to a 12-year low of less than $28 a barrel in London on Monday as the removal of international sanctions over the weekend freed Iran to revive crude exports, threatening to swell a glut created by fellow OPEC members and U.S. shale drillers. Saudi Arabia, the biggest oil exporter, won’t relent in its strategy to preserve market share even as prices crash.

Source: http://www.bloomberg.com/news/articles/2016-01-19/iea-says-oil-rout-could-deepen-as-market-drowns-in-oversupply

IMF is worried about the global growth levels for 2016

The International Monetary Fund has cut its world growth outlook, as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Mideast crude producers, and the rising dollar curbs U.S. prospects. The global economy will expand 3.4 percent this year, down from a projected 3.6 percent in October, the IMF said Tuesday in a quarterly update to its World Economic Outlook. The fund’s forecast offers little optimism amid a gloomy start to 2016 for financial markets. The Standard & Poor’s 500 Index of stocks is off to its worst start to a year on record, as the plunge in oil prices and tightening U.S. monetary policy drive flight from riskier assets around the world.

Source: http://www.bloomberg.com/news/articles/2016-01-19/imf-trims-global-outlook-as-brazil-slump-oil-weigh-on-expansion

International Sanctions on Iran have been lifted

International sanctions on Iran have been lifted after a UN watchdog confirmed it had complied with a deal designed to prevent it developing nuclear weapons. Lifting the sanctions will unfreeze billions of dollars of assets and allow Iran’s oil to be sold internationally. As part of the deal, Iran had to drastically reduce its number of centrifuges and dismantle heavy-water reactors. In July 2015, Iran agreed a landmark nuclear deal with six world powers to limit its sensitive nuclear activities for more than a decade in return for the lifting of crippling sanctions. The sanctions have cost Iran more than more than $160bn (£102bn) in oil revenue since 2012 alone. Once they are lifted, the country will be able to resume selling oil on international markets and using the global financial system for trade. Iran has the fourth largest oil reserves in the world and the energy industry is braced for lower prices. Iran will also be able to access more than $100bn in assets frozen overseas.

Source: http://www.bbc.co.uk/news/world-middle-east-35335078

American Elections: The Democratic Presidential Debate

On Sunday night the Democratic presidential candidates met for their final debate before the Iowa caucuses. Hillary Clinton entered the debate with a 25-point lead in the national polls, a big fundraising advantage, and a virtual monopoly on major endorsements. But Clinton knows from personal experience that no lead is safe until the voting starts. In the 2008 presidential race she squandered an even bigger lead over Barack Obama. Could history repeat itself in 2016? That question haunts the Clinton campaign team, particularly now that Sanders leads Clinton in New Hampshire and trails her by just 2 points in the latest Iowa poll. Sunday night’s debate will only add to Clinton’s worries. Sanders skillfully fended off Clinton’s attacks and emerged from the debate stronger than ever.

Source: http://www.independent.co.uk/voices/great-night-for-sanders-could-be-turning-point-in-race-a6818886.html

China’s economic growth levels are lowest in 25 years

The world’s second-largest economy grew by 6.8% in the October-December quarter, down from the previous quarter’s 6.9%. That dragged full-year growth to a 25-year low of 6.9%, which will lead to concern in markets around the world. The country’s stock market remains volatile, with the main index briefly falling below August’s lows on Monday, and hundreds of billions of dollars wiped off the value of shares in the last month alone.

Source: https://uk.news.yahoo.com/chinas-economic-growth-falls-25-021733549.html