Due to manufacturing slowing down this has followed a positive relationship in oil prices falling. As well, other commodity futures has fallen as a result. This article discusses how Chinese manufacturing fell to 50.1, from 50.4 last month, and how UK manufacturing has remained unchanged, marking a 19 month trend of contraction. The price of oil has also been offset due to Libya increasing the supply of oil by 130K barrels.
It is interesting how production around the world has a positive relationship with the price of oil. So the real question is will this trend of low oil prices continue, or will we be seeing an upward trend in oil commodity futures as we progress into the year 2013?
The episode of 60 minutes tonight reported on the tendency in China for people to invest a large portion of their money into real-estate. This manufacturing slow down could be due to the fact that the Chinese are holding less money to use as disposable income because they are investing it in real-estate.
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