Oil started the week with a new reduction in its oil price. Main played a role in this news that Japan has entered into recession and that the biggest producer of oil in China reported “acute” shrinkage in demand.

Today statistical offices in Japan, which is the second largest economy in the world, announced that the country is caught in its first recession from 2001 onwards. This occurs after a negative growth of 0.4 percent for the third quarter of the year and a decrease of 3.7 percent in the previous period.

The market had exerted pressure and the release of China National Petroleum Corp., Which is the largest producer of oil in China. It became clear that in September demand for black gold fell “sharply” and as the main reason for this indicates the global credit crisis.

Following the news, stock quotes in New York decreased by 1.95 percent in the Asian session fell to 55.93 dollars for barrel. Last week ended trade at levels of 57.04 dollars for a barrel oil after a weekly decline of 6.6 percent.

Exchange in London reduction in the price of oil is more limited. In the hours electronic trading January futures lost 0.9 percent and during the Asian session quoted at 53.76 dollars for barrel.

Recession and Japan - first for the past 7 years

The second largest economy in the world - Japan is in recession. It is clear from the official statistics for gross domestic product of the country for the third quarter of the year.

The Japanese economy has decreased by 0.4 percent annually for the period July-September after a decline of 3.7 percent for the second quarter, the country is in its first recession from 2001 onwards. Preliminary expectations of economists was for much more limited reduction in growth of 0.1 percent.

According to experts, the issues before Japan may widen as the global financial crisis adversely affects the export. Clearly this is particularly evident in companies like Toyota and Canon, which announced strong lower its forecast earnings and a Crop Budgets for investment.

At present the interest rate in Japan is the lowest among the 20-strong they most economies, a government debt of the country amounts to 180 percent of gross domestic product. These two circumstances are enormous obstacles to the ability of government to take measures to stimulate growth.

After today’s news the yen fell to 97,49 USD / JPY, after the data was cross at 96,09 USD / JPY.  stabilize the yen and traded at 96.88 yen rate for dollar.

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