Charlie Aitken, Bell Potter: A sharp drop in global oil prices is likely to occur as US oil storage inventories are at 80-year highs while the cost of...

Livewire News

Charlie Aitken, Bell Potter: A sharp drop in global oil prices is likely to occur as US oil storage inventories are at 80-year highs while the cost of financing oil carry trades is rising with US bond yields. Considering the slowing Chinese economy, cheap gas alternatives, high investment in physical oil and a resurgent USD, there is a clear likelihood that the oil price correction could get disorderly. A fall in the oil price is positive news for consumers, transport companies and inflation while oil producers and oil service companies are likely to suffer.


Livewire News

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

oil global commodities

Comments

Please sign in to comment on this wire.