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Record Oil Glut Stands at 3bn Barrels

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A record glut of oil is set to continue into next year and maintain pressure on prices, the International Energy Agency said on Friday.

Stockpiles stand at a record three billion, the IEA said in its monthly report.

The report has added to falls on European stock markets, with the FTSE 100 shedding almost 1% on Friday.

Frankfurt and Paris also declined following sharp falls in Asian stock markets, with Hong Kong sliding 2.2%.

Investors also reacted to disappointing eurozone growth figures and a slump in commodity prices on the back of weaker demand from China.

Other factors affecting confidence include fears that the Federal Reserve will raise interest rates next month and poor corporate results from heavyweights including Rolls-Royce and E.On this week.

The FTSE 100 was down 52 points at 6,125 in lunchtime trading after closing down 1.9% on Thursday, while Frankfurt’s Dax fell 0.7% and the Cac in Paris shed 0.8%.
‘Primed for correction’

There were no risers on the French market, with aerospace and defence company Safran topping the fallers with a near 6% slide.

Craig Erlam, senior market analyst at Oanda trading group, said: “The market was primed for some form of correction following a good five weeks for investors.”

BBC

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
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