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After the meeting between 3 OPEC members (Venezuela, Qatar, Saudi Arabia), and Russia, Saudi Arabian Oil Minister Ali Al-Naimi has hinted at further action to curb output. He stated: “The reason we agreed to a potential freeze of production is simply the beginning of a process to asses in the next few months and decide whether we need other steps to stabilize the market. We want a stable oil price.”
However, the oil price seemed to ignore the positive signal in the first place, falling severely more than 8% yesterday. The oil crash caused stock markets to tumble this morning, as Nikkei down 1.4%, Topix lost 1.13% in Japan, and ASX fell 0.57% in Australia.
The EU summit in Brussels is raising concerns about the risk of Brexit (Britain’s exit from the EU) if David Cameron cannot conclude a deal with Eurozone officials about UK’s membership
Tonight, U.S. Building Permits and Producer Price Index (PPI) will be released. Positive data would support for the dollar and put downward pressure on the euro, carrying it away from recent recovery.