Business Briefs – June 1, 2016

Ahead of Meeting, OPEC Seems Close to Riding Out Price Slump

VIENNA (AP) – OPEC is not yet in safe harbor. But ahead of a top-level meeting, the 13-nation oil cartel appears close to weathering the storm of slumping crude prices that threatened to bankrupt some members and called into question its relevance.

After touching a 13-year low early this year, the price of oil has moved steadily upward to its present level of around $50 a barrel.

While that’s still only half of what crude fetched as late as two years ago, it’s a gain of almost 90 percent since January.

World Economy Risks Getting Caught In ‘Low-Growth Trap’

PARIS (AP) – The world economy risks getting caught in a “low-growth trap” if governments don’t spend more on investments, open up to trade, and make reforms, a top economic forum warned Wednesday.

The Organization for Economic Co-operation and Development said in a wide-ranging report that it is increasingly pessimistic about the global outlook and cut its growth forecasts.

Among the risks identified by the Paris-based economic agency, which represents the world’s most developed economies, was a potential British exit from the European Union, volatility in financial markets, and Europe’s inability to find a common response to its refugee flows.

U.S. Bank Earnings Dip 2 Percent In 1Q Amid Low Oil Prices

WASHINGTON (AP) – The impact of low oil prices has continued to hobble the finances of U.S. banks, which posted increased loan losses in the first quarter driven by a huge jump in delinquent energy loans.

U.S. bank earnings dipped 2 percent in the first three months of the year to $39.1 billion from $39.8 billion a year earlier, data issued Wednesday by the Federal Deposit Insurance Corp. showed.

Banks posted a major increase in commercial and industrial loans that are past due. A large portion came from the energy sector, where low oil prices made it harder for related companies to repay their loans.

This article appeared in print on page 11 of the June 2nd, 2016 edition of Hamodia.