Posts Tagged ‘Kali’
Oil prices weakened in the London session due to the economic slowdown in China and France are anxieties credit rating outlook for energy demand. China, the world’s second largest energy consumer, reported economic growth of 9.1% for third quarter 2011; lower than the predicted 9.3% and 9.5% the previous publications. This is the lowest economic growth in the last two years as Beijing Tighten monetary policy and weak export demand.
Problem-euro zone also back into focus after German Finance Minister yesterday will not express any final solution for settlement of the euro-zone debt crisis at the upcoming October 23 meeting. Sentiment also deteriorated after Moody’s warned the French can be given a negative outlook for its AAA rating if the cost for to save the banking and other euro-zone members impose on government finances too.
“The deteriorating sentiment-euro zone and China’s economic slowdown provide reasons for investors to do profit-taking after the recent oil rally,” said Ben Taylor, senior CMC Markets. Reuters technical analyst, Wang Tao, predicted oil prices would experience a decrease in the short term after successfully achieved a high level 88 yesterday.