Oil prices appear stabilizing. Price band however cautiously watched as any further drop will not augur well for the whole world. Global economic growth is commented to be mediocre, as IMF cautions central banks across nations have no room for errors in policies.
To finance budget sustenance, oil economies are drawing up from invested funds during good times. Oil now at half the price when demand peaked, is leaving a yawning gap in the budgets forcing some countries to cut down on non-essential projects or even delay them. The situation applies to oil producers from North Europe to the Arabian Gulf. Oil shock is impacting every producer. In the US, drillers are idling rigs, and their numbers growing on price worry. Some independent reports indicates about 370 Mn barrels of oil are available as floating stock, and still growing with no meaningful production controls as every producer wants their share of revenue kept intact.
Local press reported statement of Chinese PM on the difficulty in achieving 7% growth for the economy. Despite this, the economy is indicated to record a growth of 6.8% this year with improved labour market and services sector.
In the US, the Federal Reserve is confronting several opinions on the timing for rate increase that has been delayed more than expected. The sudden economic faltering as the year gets to close is cited among the reasons for an uncertain approach by the Fed Reserve. Indications are that stimulus will continue against the sudden slackness to growth and drop in factory outputs.
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