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    Widespread losses on weakening oil outlook

    The latest fall in oil prices has pushed down markets across the globe. 

     

    Global markets have reacted in a negative fashion to the last collapse in oil sector trading on Wednesday (24 February 2016).

    Reuters reports that an expected failure to agree the terms of widespread freeze in production output among the members of the Organization of the Petroleum Exporting Countries (Opec) has been the catalyst for today's losses.

     

    As of 3.07 pm GMT, US light crude values had fallen by $1.01 per barrel to $30.85 and Brent crude prices were down by $0.59 per barrel to $32.68.

     

    This marks a return to almost 11-year lows that were witnessed earlier this month, but prior to that had not been seen since the start of the new millennium.

     

    In Europe, the UK's FTSE 100 had fallen by 1.65% by the late afternoon and the German DAX Index had lost 2.54% of its value from the start of trading sessions today.

     

    Meanwhile, markets in the US also fell after their opening, with respective losses of 1.17% and 1.14% for the Dow Jones Industrial Average and the S&P 500.

     

    Elsewhere, in Asia, the latest full day's session saw losses for the Nikkei Stock Average 225 (down 0.85%) and the Hang Seng Index (down 1.15%), although the Shanghai Composite Index did report a surprise gain of 0.9%, as the market rides a wave of confidence brought about through the appointment of a new securities regulator earlier this week.

     

    Offering an explanation for the far-reaching downturn, Credit Agricole strategist Orlando Green commented: "It has been a broad risk-off environment with falling oil prices being the main trigger."


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