Doha deal disappoints… Brazilian president faces impeachment…
Doha deal disappoints
The much-anticipated meeting of around 15 oil producing nations in Doha at the weekend has collapsed without resulting in an oil freeze. Producers including OPEC members and Russia were hoping to reach agreement but a gulf between Saudi Arabia and Iran is believed to be the main factor in the failure.
As expected, oil prices have declined on the news; US crude is back below $40 following a drop of 3 per cent.
However, not all analysts believe that the failed deal is a bad thing. Michele Della Vigna of Goldman Sachs told CNBC: "It has taken 18 months to start to rebalance the oil market with falling non-OPEC production in a variety of countries and demand showing signs of recovery which means we are getting there; we're getting to a new equilibrium."
She said that an artificial support for the market would simply push prices higher more quickly which would push producers to increase production following the 6-month freeze.
Equities are also under pressure from the oil price drop. Asian markets all closed lower. Tokyo’s Nikkei saw the largest drop (3.40 per cent) however this was more to do with the earthquakes that hit Japan.
European indexes are lower too.
Wall Street and Toronto are expected to open lower.
Brazilian president faces impeachment
The Brazilian president is a step closer to losing office having been accused of hiding weakness in the country’s finances ahead of the 2014 election. Brazil’s lower house voted in favour of impeachment Sunday as thousands protested across the country; some in favour of the president, some not. More than two thirds of the house voted for impeachment and it will not be decided by the Brazilian Senate.
The much-anticipated meeting of around 15 oil producing nations in Doha at the weekend has collapsed without resulting in an oil freeze. Producers including OPEC members and Russia were hoping to reach agreement but a gulf between Saudi Arabia and Iran is believed to be the main factor in the failure.
As expected, oil prices have declined on the news; US crude is back below $40 following a drop of 3 per cent.
However, not all analysts believe that the failed deal is a bad thing. Michele Della Vigna of Goldman Sachs told CNBC: "It has taken 18 months to start to rebalance the oil market with falling non-OPEC production in a variety of countries and demand showing signs of recovery which means we are getting there; we're getting to a new equilibrium."
She said that an artificial support for the market would simply push prices higher more quickly which would push producers to increase production following the 6-month freeze.
Equities are also under pressure from the oil price drop. Asian markets all closed lower. Tokyo’s Nikkei saw the largest drop (3.40 per cent) however this was more to do with the earthquakes that hit Japan.
European indexes are lower too.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,897.46 (-0.16 per cent) | +1.68 per cent | +0.40 per cent |
| TSX Composite | 13,637.20 (-0.23 per cent) | +1.04 per cent | -11.22 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 6,330.24 (-0.21 per cent) | +2.27 per cent | -9.50 per cent |
| German DAX | 10,024.88 (-0.27 per cent) | +0.74 per cent | -14.23 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,228.45 (-1.29 per cent) | +1.78 per cent | -29.76 per cent |
| Japan Nikkei | 16,275.95 (-3.40 per cent) | -2.68 per cent | -17.18 per cent |
| Other Data (at 6.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 42.03 (-2.48 per cent) |
39.07 (-3.20 per cent) |
1237.80 (+0.26 per cent) |
U$0.7754 |
| Aus. Dollar |
|||
| U$0.7699 | |||
Brazilian president faces impeachment
The Brazilian president is a step closer to losing office having been accused of hiding weakness in the country’s finances ahead of the 2014 election. Brazil’s lower house voted in favour of impeachment Sunday as thousands protested across the country; some in favour of the president, some not. More than two thirds of the house voted for impeachment and it will not be decided by the Brazilian Senate.
