Oil prices gained听more than two听percent on Tuesday following the ZEW index听for Europe's revelations of an听increase, despite听China's GDP rate which turned out to be below the government's target and which did not have听long term effects on prices.听
China's annual GDP growth rate for 2014 was announced as 7.4 percent earlier Tuesday, still below what the government targeted but significantly above expectations.听
The Chinese government had听7.5 percent as its target and听analysts expected that figure to be around 7.2 percent.
After the announcement, the price of the global benchmark Brent crude oil decreased slightly听to reach $48.30 per barrel at 10:45 a.m. GMT, from $48.84 per barrel at 8:00听a.m. GMT, according to official figures.听
The 2014 GDP rate is the lowest听since 1990, when it saw 3.8 percent, and far away from the double digit growth rates between 2003 and 2007,听according听to听World Bank data.听
For the world's biggest energy consumer, the low rates of growth do not only听hamper听the country's demand for oil, but also听bring听down global oil demand as well.听
Oil prices have declined sharply since June,听falling听almost 60听percent, and听marking their fastest dive听since 2008, due to low oil demand and slower growth rate in Asian and European economies.
- ZEW indicator
Meanwhile, the increase in the ZEW听index has also created a positive sentiment in the markets, while Brent prices rose to $49.40 per barrel at 1:20 p.m. GMT, from $48.33 per barrel at 11:15 a.m.听
The ZEW听index听indicates听the balance between positive and negative expectations on economic development for the future听regarding Germany and Europe.听
The ZEW Indicator of Economic Sentiment for Germany is听at 48.4 points as it听rose听for the third consecutive time听since February 2014, according to its website.听
While the positive outlook by the ZEW indicator increased听oil prices, low prices also paved the way for ZEW to gain value.听
"Decreasing crude oil prices and a depreciating euro have contributed to a further gain of the indicator," said听ZEW President Professor Clemens Fuest.听
With the positive improvement of Germany's ZEW index, the backbone of the European economy,听ZEW鈥檚 Indicator of Economic Sentiment for the Eurozone has also increased to 45.2 points, giving a positive sentiment for the European markets overall.听
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr
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