Where to turn oil prices in light of the lifting of international sanctions on Iran and record oil the bottom of a new
Crude Oil

Where to turn oil prices in light of the lifting of international sanctions on Iran and record oil the bottom of a new

19 January 2016, 07:21
Mohammed Abdulwadud Soubra
Mohammed Abdulwadud Soubra
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Crude oil continued to decline in early Asian trade on Monday after scoring a new low Tarue- 12 years last Friday. While Iran out of international sanctions that were dominated by the crisis in the past few years, the Arab Gulf's biggest rival is going through the most difficult to narrow economic Iran since the global financial crisis. In a move to counter this economic crisis resorted many countries across the Gulf Cooperation Council (GCC) to take unprecedented for the face of declining oil prices, procedures, and reducing some of the world's most generous welfare systems in order to bridge the widening budget deficit. As a result of this crisis many of the Contractors delays in government payments in addition to facing asylum many companies to reduce their workforce to cut costs.

Hui Brent oil below US $ 28 a barrel to coincide with the release of the lifting of international sanctions on Iran resolution paving the way to an increase in oil supply. Futures tumbled 4.4% in London at the lowest level since November 2003. According to the deputy oil minister for trade and international affairs Amir Hossein Zamaninia that Iran will begin to increase production and exports by 500,000 barrels per day as soon as the being the decision to lift the restrictions.

 

On the other hand, in a move to reassure the market of low oil prices, Saudi Oil Minister Ali al-Naimi said that prices will rise as a result of cooperation efforts among oil-exporting countries. He also said all the optimistic outlook for rising oil prices in the near future but he apologized for the answer when he was asked how that could affect the lifting of international sanctions on Iran for oil prices. He also announced that the agreement will be signed on Sunday between Saudi Arabia and the State of Mexico, which will include the exchange of experts, joint ventures and encourage mutual investments in an attempt to cope with the current oil crisis. He said that when oil prices fell in 1998, Mexico has cooperated with the Saudis and other suppliers to restore stability in the market and increase prices.

Decline in WTI on Monday by 3.6% to US $ 28.36 a barrel, the lowest level since October 2003 At 8:33 GMT was being traded WTI at US $ 29.06 a barrel on the other hand was being traded Brent crude at US $ 28.51 a barrel.

 

 

Oil prices recorded a correction after spontaneous fears surrounding the prospects for Iranian oil

In light of the drop in oil prices, many companies in the UAE have resorted to layoffs. According to information from the National Bank of Ras Al Khaimah PSC laid off about 250 employees yesterday, and likewise the HSBC Holdings, the bank laid off about 150 employees in commercial and private banking operations in the United Arab Emirates. While Standard Chartered has also laid off a number of positions in the country as part of a global restructuring process.

Losses were not limited to companies only, where she earned GCC equity share also cause low oil prices, heavy losses in the global stock market. After minutes of trading start trading Hui Saudi TASI index by 6.5% to below 5,500 points, the lowest level since 2011. The decline in the leading petrochemical sector by 8.0%, while banks lost 5.3%.