Following the attacks on the Saudi oil-rich territories on Saturday, the global markets were expected to have a breakdown and see a huge rise in the oil prices as the supply drops in these crucial and critical times of the global economy. With Italy already suffering from high prices of energy in the market after slowing recovering from an economic crisis, this sudden change in the energy market will affect the Italian energy demands drastically as the number of imports of energy will be raised by a substantial amount causing the economy to invest huge cash in the markets which the economy is currently incapable of doing. Investors are also expected to stay away from the European energy markets as the market experts sat that the market is expected to worsen than any other market in the world since more sources are here in Europe buying the expensive energy imports. The U.S. is close to having energy independence, but Europe is far from it. The euro-zone’s manufacturing downturn has dragged services growth lower this year. Also, with the employment and wage growth weakening, services will probably slow a little further in the forthcoming years as stated by a recent report from London-based research outfit Capital Economics. This will also drain the economy of any recovery that it had made after the crisis.
Italy was making slow progress in energy, but this hit is expected to set it back more than it has recovered.