market observers give martial: It is the speech, or from the Oil-Armageddon is from the oil war. The Opec countries could not agree on how to in the ways of the Coronavirus subsiding Oil consumption to react. The price of Oil has been falling for weeks, and yet the big oil promoters don't want to cut production.

The dispute between Russia and Saudi Arabia. Russian President Vladimir Putin sees no reason to reduce the Oil production – the revenue were sufficient. Saudi Arabia, the Situation is now completely escalate and is looking to expand despite the sharp drop in prices, the Oil production even further. So the Saudis are reacting to the refusal of Russia, in the case of a throttling of production to participate.

Bleak Outlook for Europe

This leads to the decay of a dramatic Price: The Oil price dropped sharply since the Iraq war in January 1991. A barrel of Brent currently costs less than $ 35. So the price has halved since the beginning of the year almost. According to the investment Bank Goldman Sachs prices could fall to $ 20.

The Crash in the Oil market, together with the Fears of the economic consequences of the Coronavirus for panic on the stock exchanges. The Asian trading places lost in the night. In Europe, it is not better. The Swiss benchmark index SMI lost this Morning around 7 percent at the start of trading even more than 10 percent. Similar to violent price falls were also evident when the German DAX or the British FTSE-100 Index. There it met the Oil companies Shell and BP are particularly hard, its shares lost about 20 percent. Also strong is the Oslo stock exchange reacts, it drops to 11 per cent – no wonder, the oil-rich country is affected by the price war in the oil most likely.

In Switzerland, respond to the shares of financial companies the most. The bad mood in the markets will ensure that the large investors are more cautious. This will have an impact on the revenue of the banks. UBS and CS will therefore lose significant value.

While the markets react in panic, to carry on the strategy of Saudi Arabia, first fruits. As reported by Bloomberg, the Saudi Oil company Aramco already new orders. The bet on lower Oil prices, in order to stabilize the demand for it, it seems so, at least for the time being to be working. Some market observers believe that Russia wants to do with the low price of Oil the US shale oil producers, the life difficult for. Your promotion is worth starting at an Oil price of more than $ 50 per barrel. According to the US energy expert Ed Crooks of this attack could cause but little, because the consequences are very limited.

Several news organisations have been reporting that one of the reasons why Russia has not agreed to cooperate with OPEC on production cuts is to hurt the US shale industry and the wider US economy. If true, it does not seem like a very coherent strategy. (1/n)

— Ed Crooks (@Ed_Crooks) March 8, 2020

Falling Oil prices should actually be for the economy is positive. Because lower commodity prices reduce the cost of the company. However, according to the analysts of Morgan Stanley in this case it is different. Because the economic development was weakened by the fear of the Coronavirus. Together with the sharp fluctuations in the global financial markets have led banks to be more cautious when Granting loans, what is reinforcing the negative impact of the strong Oil price fall yet to.As a result, the Chance that the world is sliding into an economic recession increases.

For Japan, believe the market observers, such a scenario already as likely, and also in Europe, the Chance that an economic downturn is on the rise. He should also reach Switzerland, would not be property protected against a loss in value. "The real estate market is no safe haven. In the event of a recession, bigger losses would be in the luxury segment as well as investment properties is likely to be," says UBS Economist Matthias Holzhey.

Something Good to have put the turmoil in the markets: the oil price is likely to fall further. This development has emerged in the last few weeks, and recently even strengthened. But at the gas station, the prices are likely to react hardly. The price of petrol is determined in Switzerland, only a small part of the price of crude oil. More important is the petroleum tax, the oil tax surcharge and the import taxes. The state levies account for more than half of the petrol price.

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Created: 09.03.2020, 11:53 PM