World Trade News Summary

World Trade News Summary
By Elif Ozdemir

During this week several significant events transpired particularly in the industrial world. These changes have influenced directly or indirectly not only the growing global trade, but likewise the developing economy of countries worldwide. On one hand, some events have positively contributed to the various sectors of international or local economy and they serve as harbingers of more future developments. On the other hand, there were also events that have negatively impacted and in fact continue to threaten the various sectors of both international and local trade and economy.

Oil Price Continues to Improve in the Global Market

This week has been full of good news for oil traders. Last Monday, oil rate plummeted by $2. As such, U.S crude oil dipped down to $1.6 thus settling to a rate of $62.41 per barrel at the Merchantile Exchange (New York). The decrease also calmed down a 4-day protest prompted by the oil price, which previously raised up to $63.92 per barrel. Meanwhile, the rate of oil in Nigeria continued to increase. This was due to the recent discovery of an oil pipe leak and the militant protests, which forced Nigeria to cut a large percentage of its oil production and supply. Although the situation of Nigeria affected the international oil trade, it did not keep the rate of oil from improving. The significant decrease has been attributed to current negotiations with Iran regarding its plans for nuclear production.

Last Tuesday, the oil rate slipped further by 2% ($1.26). Hence, U.S crude oil settled to a price of $61.58 per barrel. Meanwhile in London, brent crude decreased by 1.32 cents and remained at $61.02. The same trend was followed by the rest of the oil market worldwide. Oil value further improved due to Nigeria's statement to restore a large part of its production and supply and to OPEC's decision to maintain out near the maximum level. Nigeria would increase its output by 75% in the coming weeks. The OPEC officials, too, said that they would keep oil production and supply close to the limit in order to avoid gaps and prevent the oil price from increasing.