Big Changes with Oil, China, and Britain

NEW ORLEANS - March 1, 2016 - PRLog -- Oil prices bottomed out at the end January, and after a brief rise and fall during February, seem to be on the rise for the long run. Oil prices started off the week with a 3% jump, thanks to Saudi Arabia, Qatar, Venezuela, and Russia promising to freeze output. These stabilized output figures reduce market volatility, creating what is hopefully a more sound economy for 2016. White Brent crude is now just above $35 a barrel, a recent Reuters poll showed industry analysts only expect another $5 gain this year.

If oil prices have in fact bottomed out, then we may finally be out of this economic slump. Don't forget, the Dow, among other indexes, started off 2016 with dismal numbers due to, in part, the uncertainty and fear generated by crashing oil prices. Now, with what seems like the worst behind us, investors can start trading with a higher degree of confidence. With oil production stabilizing across the globe, and China attempting to kick its economy back up a notch or two, things are looking up. In the US, consumers are, and will continue to, benefit from cheap gas.

Right now there are three big pieces to the global economic puzzle: Oil, China, and a potential British exit from the EU. Just last week, all three pieces were in limbo, causing this continued market volatility. With industry insiders expecting oil prices to slowly rise over the year, one piece is finally locked in. With this new found optimism, China may finally be turning the corner too, although anxiety caused by Britain is hampering any major recovery. 'Brexit' as Britain's move to leave the EU is dubbed, sits around a 30% probability at this point. Prime Minister David Cameron against the move, while London Mayor Boris Johnson, one of England's most powerful politicians, is pro-Brexit.

What does this all mean for Americans? Well gas will stay cheap, which is great for everything from airline tickets to car sales. If China's economy recovers a few points (although not to the breakneck growth of years past) Wall Street will be happy, and, if Britain does separate from the EU, it could very well be the end of the European Union.