Wiki Actu en

March 18, 2011

Japanese stocks continue to fall after earthquake

Japanese stocks continue to fall after earthquake

From Wikinews, the free news source you can write!
Jump to: navigation, search
Economy and business
Euro coins and banknotes.jpg
Related articles
  • 25 June 2015: Petition pressures City of Edinburgh Council to review clause affecting live music scene
  • 5 June 2015: Australian businessman Alan Bond dies aged 77
  • 5 March 2015: Spanish authorities arrest Yuriy Kolobov, former Ukrainian finance minister
  • 26 February 2015: Southwest Airlines grounds 128 uninspected planes
  • 9 December 2014: New Delhi orders Uber cease operation following alleged rape
Collaborate!
  • Pillars of Wikinews writing
  • Writing an article

Friday, March 18, 2011

The prominent Japanese Nikkei 225 stock market index fell another 1.4% Thursday, over financial turmoil after the massive 9.0 magnitude earthquake and tsunami hit the country a week ago.

For the past five trading days, stocks have been down by a total of fourteen percent; today, they were down as much as five percent, or 454 points, but rebounded to close at 8,962 points.

US stocks also reacted negatively to the cataclysm; the Standard & Poor’s 500 index dropped 1.95% while the Dow Jones Industrial Average lost 2.04%. The British FTSE, however, gained 0.77%, but after a large loss yesterday.

Meanwhile, the Japanese yen reached its highest level ever against the US dollar since the end of World War II, peaking at 76.25 to a dollar before finishing the day at 79.14.



Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

October 12, 2009

British FTSE index reaches one-year high, other European markets rise

British FTSE index reaches one-year high, other European markets rise

From Wikinews, the free news source you can write!
Jump to: navigation, search

Monday, October 12, 2009

Economy and business
Euro coins and banknotes.jpg
Related articles
  • 25 June 2015: Petition pressures City of Edinburgh Council to review clause affecting live music scene
  • 5 June 2015: Australian businessman Alan Bond dies aged 77
  • 5 March 2015: Spanish authorities arrest Yuriy Kolobov, former Ukrainian finance minister
  • 26 February 2015: Southwest Airlines grounds 128 uninspected planes
  • 9 December 2014: New Delhi orders Uber cease operation following alleged rape
Collaborate!
  • Pillars of Wikinews writing
  • Writing an article

The British stock index FTSE 100 closed at its highest levels in over a year on Monday, following news of stronger commodity prices.

The share index increased by 48.3 points, or 0.9% to finish the day at a level of 5,210.17, a figure not seen since last September.

The best performer was the Old Mutual insurance company, reaching a sixteen-month high after gaining 4.6%.

Some economic analysts think that the FTSE index could continue to gain for the remainder of the week. David Jones, the chief market strategist at IG Index, said that “the next FTSE target traders are eyeing in the short term is the 5,350 high hit in September last year and the way sentiment is going it would not be a surprise to see that hit this week.”

Other European markets also posted gains on Monday. The German DAX index gained 71.35 points to a level of 5,783.23, while the French CAC 40 increased 46.19 points to 3,845.8.



Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

August 21, 2009

Stock markets worldwide rise on hopes of US economic recovery

Stock markets worldwide rise on hopes of US economic recovery

From Wikinews, the free news source you can write!
Jump to: navigation, search

Friday, August 21, 2009

2008–09 financial crisis

Birmingham Northern Rock bank run 2007.jpg

More articles about the 2008-09 financial crisis on Wikinews:
Read more about the 2008-09 financial crisis on Wikipedia

Ben Bernanke

Stock indexes worldwide rose on Friday, after US bank chief Ben Bernanke said that the US economy was starting to recover from the recession.

Addressing a conference in Wyoming, the bank chief said that “the prospects for a return to growth in the near term appear good.”

He added, however, that “the economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels.”

The Dow Jones Industrial Average gained 155.91 points, or 1.67%, to end the day at 9505.96. The Nasdaq reached 2020.90 points after gaining 1.59%. The Standard & Poor’s 500 Index, meanwhile, struck a ten-month high, reaching a level of 1,026.13 at the closing bell, up 1.9%.

The British FTSE index rose about two percent, closing at 4,851. The French Cac index gained 3.1% and the German Dax 2.8%.

“Bernanke was a little bit more bullish than most people were expecting. He’s saying that the global economy is starting to emerge from the recession and that the fears of a financial collapse have receded substantially,” said Jacob Oubina, the currency strategist of Forex.com.

“I think the market is just taking those headlines as extreme positives for the outlook.”

Jean-Claude Trichet, the European Central Bank president, warned that talk of a complete recovery might be premature. “I am a little bit uneasy when I see that, because we have some green shoots here and there, we are already saying, ‘well, after all, we are close to back to normal,’ ” he said.



Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

April 4, 2009

US stocks log gains for fourth week in a row

Filed under: Economy and business,Stock market — admin @ 5:00 am

US stocks log gains for fourth week in a row

From Wikinews, the free news source you can write!
Jump to: navigation, search

Saturday, April 4, 2009

Stock market
on Wikinews
Related Wikipedia articles
  • Stock Market
  • Fundamental Analysis
  • Technical Analysis

United States stock indexes posted gains on Friday, marking a four-week long positive streak. This comes despite a report released by the US Labor Department on the same day, which said that the US economy shed 663,000 jobs in March, with the unemployment rate reaching 8.5%, the highest since 1983.

The Dow Jones Industrial Average posted a modest gain of half a percent or 39 points, ending the day at 8,017. The index has not closed above 8,000 since February. The last time the Dow had risen for four weeks in a row was between September and October of 2007, when the stock index reached its all-time high of over 14,000. The streak is the index’s best since 1993.

The broader S&P 500 gained eight points, or one percent, by the closing bell. The Nasdaq Composite had the largest gains of the three indexes, up 1.2% to 1,622. Both the S&P and the Dow gained over 3% over the course of the week, while the Nasdaq was up almost 5%.

In other markets, both the German DAX and the Japanese Nikkei 225 indexes remained even, whilst the British FTSE 100 slipped 2.3%.



Related news

Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

March 23, 2009

US stock markets soar after bailout plan

Filed under: Economy and business,Stock market — admin @ 5:00 am

US stock markets soar after bailout plan

From Wikinews, the free news source you can write!
Jump to: navigation, search

Monday, March 23, 2009

Stock market
on Wikinews
Related Wikipedia articles
  • Stock Market
  • Fundamental Analysis
  • Technical Analysis

A logarithmic graph of the Dow Jones Industrial Average from January 2000 to December 2008.

United States stock markets surged on Monday, following an announcement by the government to give another bailout to the banks. All three major stock indexes posted gains of about seven percent at the closing bell.

Part of the rally was attributed to the US Treasury’s announcement that it will buy up to US$1 trillion in toxic assets.

The Dow Jones Industrial Average gained 497.48 points, or 6.84%, to a level of 7,775.86, while the Nasdaq Composite soared 98.50 points, or 6.76%, to 1,555.77 points. The Standard & Poor’s 500 index jumped by 7.07% or 54.37 points, reaching a level of 822.91.

Among the winners in today’s rally were bank stocks. Shares for the Frontier Financial Corporation, a regional bank serving the northwestern US, surged by 52%. Other banks also saw their shares increase: Bank of America stocks increased by 26%, JP Morgan Chase by 25%, and Citigroup by 19.5%.

Crude oil prices were up $1.73 or three percent to $53.8 a barrel.

Overseas stock exchanges also rallied: indexes in France, the United Kingdom, and Germany all rose by approximately 2.8%.



Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

March 13, 2009

US stock markets have their best week since November

Filed under: Economy and business,Stock market — admin @ 5:00 am

US stock markets have their best week since November

From Wikinews, the free news source you can write!
Jump to: navigation, search

Friday, March 13, 2009

Stock market
on Wikinews
Related Wikipedia articles
  • Stock Market
  • Fundamental Analysis
  • Technical Analysis

Logarithmic graph of the Dow from January 2000 through December 2008

Wall Street had its best finish since November 2008 after a four day rally with the stock market’s indexes seeing their best weekly gain in nearly five months. The major indicators in the NYSE had a gain of around 10 percent. This was mainly due to bank shares bouncing and alleviating fears about the economy.

The Dow Jones industrial average (INDU) finished on 7223.98, an increase of 54 points from March 12 2009. The S&P 500 Index finished at 756.55 a 6 point gain and the NASDAQ composite had a 5.40 point gain as well to end the day at 1431.50.

The rally began earlier this week after the news from Citigroup Inc. about managing profits during first two months of the year. The news lessened fears about the country’s major financial institutions collapsing after the collapse of Lehman Brothers in September. There was more good news from Bank of America Corp. and JPMorgan Chase & Co., who announced that they have had profits in the current year.

Today was a mixed day for the financial sector, Drug makers had some gains and so did General Motors and Berkshire Hathaway , which helped the indexes gain. The value of the US dollar fell against other world currencies, but gold prices increased.



Related news

  • “US stock markets reach 12-year lows” — Wikinews, March 5, 2009

Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

March 5, 2009

US stock markets reach 12-year lows

US stock markets reach 12-year lows – Wikinews, the free news source

US stock markets reach 12-year lows

From Wikinews, the free news source you can write!
Jump to: navigation, search

Thursday, March 5, 2009

2008–09 financial crisis

Birmingham Northern Rock bank run 2007.jpg

More articles about the 2008-09 financial crisis on Wikinews:
Read more about the 2008-09 financial crisis on Wikipedia

Logarithmic graph of the Dow from January 2000 through December 2008

US stock markets dropped to twelve-year lows on Thursday, amidst falling confidence in the financial sector and worries over whether the US automobile manufacturer General Motors will be able to keep operating.

The Dow Jones Industrial Average dropped by 4.08%, or 280.52 points, at the closing bell, reaching a level of 6595.32, a new 12-year low. The Nasdaq Composite lost 54.15 points, or 4%, to 1299.59, while the Standard & Poor’s 500 plunged by 30.27 points, or 4.25%, closing at 682.60.

Every stock in the Dow Jones, other than Wal-Mart, either lost ground or remained even, and all stocks in the S&P 500 index lost ground.

General Motors’ shares lost 15.5% after the auto firm announced that its auditors had “substantial doubt” over whether it would be able to keep operating.

Shares of financial companies were lower by nine percent, with Bank of America losing 11.7% and Citigroup falling by 9.7%.

“What’s most worrisome is that we haven’t hit the crescendo yet,” said Bill Groeneveld, the head trader for vFinance Investments. “Asset-management divisions are getting calls to just liquidate everything, and we haven’t seen the big players come back in at all.”

“This is one of the worst bear markets in the last 100 years; it started out with the credit crisis and the subprime [loans], but it is like a forest fire that has raced across the clearing and ignited other parts: Autos, auto parts, the insurance companies have been hit very hard. The credit crisis is causing an unraveling of industry after industry because the banks don’t lend,” said David Dreman, the chief investment officer of Dreman Value Management.

European markets were also lower today, with the London’s FTSE index losing 3.2% and the DAX index of Germany falling by five percent.



Related news

Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

February 24, 2009

US stock markets fall to lowest levels since 1997

US stock markets fall to lowest levels since 1997

From Wikinews, the free news source you can write!
Jump to: navigation, search

Tuesday, February 24, 2009

2008–09 financial crisis

Birmingham Northern Rock bank run 2007.jpg

More articles about the 2008-09 financial crisis on Wikinews:
Read more about the 2008-09 financial crisis on Wikipedia

Logarithmic graph of the Dow from January 2000 through December 2008

Three major United States stock market indexes closed at their lowest levels in over a decade on Monday, amidst declining investor confidence and worries that the government will nationalize the banks.

The Dow Jones Industrial Average fell by 3.41%, or 251.4 points, to end the day at 7,114.3, its lowest level since October 1997. The Standard and Poor’s 500 index lost 26 points or 3.5% to a level of 743.33, its lowest level since April 1997. The Russel 2000 Index of smaller companies dropped by four percent.

The three stock market indexes have been falling for the last six days.

The Nasdaq Composite index lost 53.5 points, or 3.71%, closing at 1,387.7. However, the index remained above its November 20, 2008 low of 1316.12.

Despite the worries about the banks, bank shares climbed today. Bank of America shares rose by 3.2%, whilst Citigroup gained 9.7%. However, stocks for both banks have plunged more than 68% this year-to-date.

“People left and right are throwing in the towel. The biggest thing I see here is the incredible pessimism — the government is doing a lousy job of alleviating fears,” said Keith Springer of Capital Financial Advisory Services.

“Many investors simply can’t contemplate any more stock market risk in their portfolios. Sentiment in the market is very weak and negative,” said the senior market strategist for Invesco AIM, Fritz Meyer.



Related news

Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

January 12, 2009

Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

From Wikinews, the free news source you can write!
Jump to: navigation, search
India
Related articles
Location of India
India (orthographic projection).svg
Collaborate!
  • Pillars of Wikinews writing
  • Writing an article

Monday, January 12, 2009

B. Ramalinga Raju is the founder and former Chairman of Satyam Computer Services.

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

The offences

Satyam Development Center in Hyderabad, India.

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Satyam Technology Center at Bahadurpally,Hyderabad

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

About Satyam Computer Services

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

PricewaterhouseCoopers new Melbourne offices at Freshwater Place, Yarra River, Melbourne.

Impact on Satyam Computer Services finances and reactions

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.’s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

Thurgood Marshall United States District Court for the Southern District of New York Courthouse at 40 Centre Street.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

Related news



Sources

Wikipedia Learn more about Ramalinga Raju and Satyam Computers on Wikipedia.
Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.

December 17, 2008

OPEC cuts production by 2.2 million barrels a day

OPEC cuts production by 2.2 million barrels a day

From Wikinews, the free news source you can write!
Jump to: navigation, search

Wednesday, December 17, 2008

Economy and business
Euro coins and banknotes.jpg
Related articles
Collaborate!
  • Pillars of Wikinews writing
  • Writing an article

The Organization of the Petroleum Exporting Countries (OPEC) has agreed to drastically cut the daily production of oil by 2.2 million barrels per day (bpd). In a decision reached in Oran, Algeria, energy ministers from all 12 OPEC members agreed to make the largest cut in OPEC’s history.

Oil prices have fallen from a high of $140 in July to just around $40; a decrease of $100. OPEC has cut 4.2 million bpd since September, when the price of oil decreased suddenly over fears of a global recession and lower usage of oil. With this new decrease, production by OPEC members will be 24.845 million bpd. Saudi Arabia is taking the majority of the cut by decreasing their production by 1.2 million bpd.

  • Nymexlogo.JPG NYMEX/WTI: $40.54/barrel Loss $-3.06 (-7.02%)
  • ICE LOGO.jpg ICE/Brent: $42.98/barrel Loss $-.96 (-2.19%)
20:00, 17 December 2008 (UTC)
Prices displayed in U.S. dollars.

In the statement released by the organization, they wrote “…that crude volumes entering the market remain well in excess of actual demand: this is clearly demonstrated by the fact that crude stocks in OECD countries are well above their five-year average and are expected to continue to rise. Moreover, the impact of the grave global economic downturn has led to a destruction of demand, resulting in unprecedented downward pressure being exerted on prices…”

OPEC faces a tough task in trying to level the price of oil to a reasonable amount. Most experts and oil officials believe that $75 is the ‘fair price’ for a barrel of oil. Chakib Khelil, the OPEC president, said during the meeting that “OPEC has a long-established record in meeting the challenges it faces, however tough they may be. The challenge facing the oil market today is clearly a formidable one.”

Russia, which is not a member of OPEC, also agreed that a cut was needed and would cut its production by 600,000 barrels. OPEC will also urge other non-OPEC members who are oil exports, to cut their production. Mexico and Norway are two of the largest oil producers that not members of OPEC. Russia’s action is not official, and the country has had a history of failing their pledge to cut their output.


Sources

Bookmark-new.svg


This text comes from Wikinews. Permission is granted to copy, distribute and/or modify this document under the terms of the Creative Commons Attribution 2.5 licence. For a complete list of contributors for this article, visit the corresponding history entry on Wikinews.
Older Posts »

Powered by WordPress