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Oil Prices Take a Breather | EU-Italy Budget Row Deepens
Published October 2, 2018
A war of words between the European Union and Italy over budget plans further escalated, as Deputy Prime Minister Luigi Di Maio said the Italian government will not retreat by even a “millimeter” from its 2.4 percent budget deficit target.
Brent oil prices fell slightly on profit taking but remained near their highest levels since November 2014 as markets braced for tighter supply once US sanctions against Iran kick in next month. Brent crude prices have hit a low of $84.31.
With a NAFTA deal on the table, the clock is ticking for the next key trade talks for Canada’s steel and aluminum industries. After a marathon weekend of discussions, negotiators secured a trade agreement just before a midnight deadline. However, the steel and aluminum tariffs that US President Donald Trump imposed on Canada and Mexico will be dealt with separately.
The International Monetary Fund is poised to cut its forecast for global growth as Managing Director Christine Lagarde warns trade wars and tighter credit are darkening the outlook. The IMF will update its World Economic Outlook next week ahead of opening its annual meeting.