After the Energy Information Administration (EIA) released its report that crude oil inventories rose beyond the expected rates during the past 7 years, the oil rate slipped further last Wednesday by 2.5%. Based on the report, the inventories rose as high as 6.8M barrels during the past week. The results exceeded the expected rate of 1.6M barrels. Analysts added that the decision of OPEC to maintain the oil output close to the limit also contributed to this improvement. Another factor considered was Iran's statement to maintain an adequate oil production and supply amidst the negotiations regarding its nuclear plans.

Several Partnerships Yield More Improvements in the World Trade

AT&T Inc. disclosed last Sunday its decision to acquire BellSouth Corp. for around $67B. This move was part of AT&T's plan for further expansion especially in the southeastern region of the U.S. The agreement between the two companies would then bring Cingular Wireless, the leading wireless phone company in the U.S, under the sole ownership of AT&T. The deal would be completed within the span of one year. Although the transaction would need the approval of the anti-trust administrators including the Federal Communications Commission, analysts commented that the process would probably not encounter any opposition.

Upon the release of the news regarding AT&T's acquisition of BellSouth, the stocks at the European telecom market significantly improved. The European division of DJ Stoxx telecoms rose by 2.2% thus ensuring more stability for 2006. BT earned as high as 4.3% up to a 7-month pence. Both the French and the Dutch telecom improved by 2%. Vodafone increased as high as 4.7% to a close 2 month 127.20 British pounds. The news of the acquisition excited several international telecom companies thus leaving positive results in this particular sector of trade.

Meanwhile in the gas industry, Linde AG, a leading supplier of medical and industrial gases and producer of warehouse machinery, agreed to pay 8.2B pounds ($14.$B) in order to acquire its rival, the British BOC Group. According to analysts, a counter-bid to buy BOC was least expected due to the pressure in the entire gas trade and the competitive amount proposed by Linde. The acquisition further boosted the assets and profits of the German company and placed it to the top place along with French Air Liquide as a leading gas industry worldwide.