Oil price are Down ahead of Opec meeting

Oil futures drop down to a new 4-year lows overnight as Opec members meet in Vienna this Thursday to decide whether to cut production.

ICE January Brent fell $2.27 to $75.48 a barrel (4-year low), while Nymex West Texas Intermediate was off $1.48 at $72.19. Brent crude is down -1.4% at $76.67. WTI is down -0.8% at $73.08.

Saudi Oil Minister Ali al-Naimi said yesterday that he believe that the oil market will stabilize itself eventually.

If they don't cut production, obviously the price of crude oil will continously fall. US rising oil production and Opec supplies surplus occured simultaneously with the low demand for it in China and Europe.

Japan's Economy Contracts Into Recession

Japan's (3rd largest economy in the world) economy shrank for the second consecutive quarter that put them in recession surprised the world. Gross domestic product (GDP) went down at an annualised 1.6% from July to September, compared with forecasts of a 2.1% rise. It followed a revised 7.3% contraction in the second quarter, this is the biggest fall since the March 2011 earthquake and tsunami.

Japan's Prime Minister Shinzo Abe will be calling a snap election to obtain a mandate to delay sales tax rise to 10%, which is scheduled for 2015.

The economy shrank 0.4% in the third quarter from the quarter previous. The data showed that growth in private consumption, which accounts for about 60% of the economy, was much weaker than expected.

Manufacturing Growth in China Falls in October Unexpectedly

BEIJING, November 1 - China's manufacturing growth fall to a five-month low in October along with a slowing economy and a weak global demand. The official Purchasing Managers' Index (PMI) fall to 50.8 in October from September's 51.1, according to a survey from the National Bureau of Statistics that was released on Saturday. They also noted that it is still above the 50-point level that separates growth from contraction on a monthly basis.

The PMI showed foreign and domestic demand fall to five- and six-month lows, respectively, with overseas orders shrinking slightly on a monthly basis.

China's growth fell to 7.3% in the third quarter, its lowest level since the 2008 and 2009 global financial crisis, as the housing market sagged and domestic demand and investments are down.

Chinese government have said that full-year economic growth may fall short of their 7.5% target, but that it would be acceptable as long as inflation stays low and the economy continues to produce jobs.

The World Bank has said that China's growth could possible go down to about 7% next year, they said that Beijing should found a way to promote competition and efficiency through reforms in their labor and real estate markets along with its state-run financial system.