Mexico Trade Balance s/a, $: $-1.378B (November) vs previous $-1.15B

The oil price plunged on Monday to hit 11 year low. Oil price fell 2 per cent and dropped to $36.05. The slump in oil price in the last one year is largely the result of an over-supply sparked by OPEC’s market strategy. This slump has hurt major economies of the world. To begin with lower oil prices have hindered inflation growth in many countries causing the central banks to keep interest rates at record low levels. The central banks’ objective is to spur demand and in the process raise prices. However, in the process savings has been hurt. Investors started moving towards more volatile stock markets in hope of getting better returns on their investment.