Oil prices re­treat with global mar­kets as more rigs restart

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices slipped again Monday, ex­tend­ing last week’s losses and mir­ror­ing a sell-off across Asian mar­kets fu­elled by wor­ries about the global econ­omy, Bri­tain’s fu­ture in the EU and pro­duc­ers bring­ing more rigs back on­line. The re­treat comes af­ter US bench­mark West Texas In­ter­me­di­ate last week hit an 11-month high thank to a weaker dol­lar, which makes the com­mod­ity cheaper for any­one us­ing other cur­ren- cies. Deal­ers are cau­tiously await­ing meet­ings of the US Fed­eral Re­serve and Bank of Ja­pan this week hop­ing they will at least pro­vide some guid­ance on mon­e­tary pol­icy.

There is also in­creas­ing ner­vous­ness that Bri­tain will vote to leave the Euro­pean Union, with some opin­ion polls say­ing the “leave” camp in front just over a week be­fore the June 23 ref­er­en­dum. There are wor­ries that such a de­ci­sion could lead to a fresh wave of tur­moil across global mar­kets. “This week as well as the next will likely see in­creased volatil­ity in the mar­kets. The tide sur­round­ing the Brexit sen­ti­ment will quickly shift as head­line polls drive trad­ing,” Bernard Aw, a strate­gist for IG Mar­kets wrote in a note. “While there are no ex­pec­ta­tions for ac­tion from the Fed­eral Re­serve and the Bank of Ja­pan, their post-de­ci­sion com­ments will still mat­ter.—AFP

KUN­MING, CHINA: Peo­ple vis­it­ing stalls at the first day of 4th South and South­east Asia Im­port and Ex­port Ex­po­si­tion, which will con­tinue.

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