Yesterday, the reports OPEC has decided to increase oil production in order to brake the leap in oil prices and alleviate the concerns of a global shortage. According to the reports, Saudi Arabia, Kuwait, and the United Arab Emirates and Nigeria will increase their oil production by over 400 thousand barrels per day in the coming weeks. The increase of oil production in these countries is expected to compensate for the fall in Libya's oil production.
Starting early this month the price of oil increased by 9%. The in oil prices has been the main factor in the last few days' decline on Wall street, and as such – on other stock exchanges around the globe.
First signs of a possible resignation by Quaddhafi and OPEC's announcement of increased production have brought about an announcement of a 1.4% decline in the price of black gold long before the beginning of trade, while the price of oil continued on its way down, and recorded a new decline of 0.5% to the level of 105 United States dollars for one barrel of oil.
Europe's stock exchanges locked yesterday at index rises, after the prices of oil stabilized for the first time in three days due to reports that OPEC countries will raise the organization's oil production.
In the global macroeconomic arena, the Fitch credit ratings agency has announced yesterday that the state of America's largest rival, China, is itself complicated. According to an index published by the agency, China is facing a 60% chance of a banking crisis in the next two years, due to record high levels of banking laws and a leap in real estate prices. The agency is concerned over holes in the banks' balance that may lead to an explosion of the Chinese real estate bubble.