Oil price fell sharply amid OPEC meeting, questions asked for Stock Market

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Oil price fell sharply amid OPEC meeting, questions asked for Stock Market

US stock investors remained tremulously reticent, as oil price experienced a 30% fall over just a couple of months’ time-frame. The recent oil plunge has also presented a sign of weakness in the global growth and the long economic expansion might have just been at the edge of a clattering cliff.

As the OPEC members had been meeting in Vienna on Thursday, December 6th, the oil price fell further and during the preparation of this report, US crude has been residing on $51.19. OPEC and allied exporting countries had ended up the meeting without reaching any conclusion about output cut.

However, an announcement regarding output is anticipated on December 7th, Friday, after a debate over the matter with the allied countries like Russia. A cheaper crude price does not really meet economic benefits for the end consumers, as the deduction of fuel price has never really been proportionated to the fall of crude price.

However, a few companies would be benefitted and consumers might experience a little sign of relief, yet the investors have already been preparing for a significant drop of US profit next year, as a dwindled crude price ought to bite into the profits of energy producers, that are parts of the Wall Street Benchmark S&P 500 stock index.

Regarding the recent downfall of Crude oil, the chief market strategist at BNY Mellon Investment Management, Alicia Levine said, “What started the sell-off on oil was a supply issue. In the last couple of weeks, what we are getting is fears of slowing demand. And fears of slowing demand are directly related to fears of global growth slowdown. ”