Stock exchange news. On Tuesday Greek Prime Minister Georgios Papandreu and German Chancellor Angela Merkel met to discuss not only the destiny of Greece, but also other members of Euro zone. Before the meeting the Prime Minister again claimed that he could guarantee that Greece would fulfill all terms of austerity policy, which are to be fulfilled according to the first program of European Union help to Greece, the size of which is 110 bln. Euro. A statement that Athens will manage to reach positive balance of primary budget by 2012 was very promising. It is worth mentioning that positive balance of primary budget does not take into account interest payments.
There may have come the moment when Europe should stop arguing and concentrate on projects and suggestions of economic reforms in order to have an opportunity to break financial market pressure. At this point it is very important to take the planned measures on fiscal integration in order to stabilize currency union. It is of major importance to broaden European Financial Stability Facility /EFSF/ and form a constant mechanism for economic stability and solidarity.
Athens are doing their best to return market trust and eliminate the consequences of economic and political mismanagement during the previous years, which has caused the current crisis of sovereign debt. Greece is aiming to overcome the period of hardships and return to stable growth and prospering, and it has directed all efforts on Greek nation revival.
More drastic stabilization measures as well as positive forecast, especially those that concern Greece, encourage the resurrection of hope to move from the dead point and deal with world economic slowdown, which will inevitably influence oil price.
The price of Brent oil futures has been supported by the point of 101.65 and then rose to 106.19 dollars. For the forth time during the previous 4 months buyers have returned to the market at the level that is very close to it. This is currently encouraged by the increased optimism at the market.
Brent futures, as admitted by the analytics of Department of Derivatives Trading, have entered positive territory, WTI futures have left the minimal level that had lasted for 6 weeks. Oil price is stabilizing after jumps and drops during the previous week. However, there is little likelihood that this stabilization will last for a long time, as statistical data keeps making claims about world economic slowdown and there are no effective measures to change the situation for the better. Due to this, increase of oil demand is unlikely to happen. Less demand worldwide means falling prices.
