As the entire world frantically watches the Libya unrest, the stock markets reveal another financial hullabaloo.
The wider unrest has caused the oil prices to gush to$119 a barrel. Libya has also reduced the oil outputs by 1.2 million barrels a day, counting to 75% of its export. The matter grows of immense importance as Libya is the third largest oil producer in Africa.
Along with it, there are several international oil workers literally trapped in various camps in Libya. Rescue operations are going on. Barack Obama, Nicholas Sarkozy and Cameron are planning to put pressure on the Libyan government to terminate the massive violence.
The International Energy Agency predicts that 7,50,000 barrels have been deleted from the world’s oil market.
The dramatic price rise followed after the number of shipments to other countries had been reduced by the Libyan government. Though Saudi Arabia, which is the highest exporter in the OPEC( Organisation of Petroleum Exporting Countries), assures that the reduction can be managed.
European shares
The world economy is definitely going to witness another spectacle, especially the forecourts and motorists in Britain. Investors are expressing their concern regarding the fall in oil prices. The European shares are falling, consecutively for the fourth time in a row.
Stock exchange crumbles
FTSE 100, the share index of 100 most capitalised UK companies noticed a down of 0.06%. While, DAX, the German stock index fell by 0.89%. CAC 40, the benchmark French stock market fell by 0.09%.
High stakes
Goldman Sachs, the American investment banking firm reports that such disruption could severely affect demand rationing. The outcomes would definitely caused decrease in the earning potential, mushrooming the recession, causing higher inflation.
shubhdachaudhary 