Tuesday 17 December 2019

COLUMN-Oil prices rise on optimism about economy in 2020: Kemp - Reuters

COLUMN-Oil prices rise on optimism about economy in 2020: Kemp - Reuters:

Crude oil traders have become progressively more bullish about the outlook for prices since the beginning of October as the trade war between the United States and China has eased, lifting concerns about a global recession.

Deeper production cuts by Saudi Arabia and its allies in the expanded OPEC+ group of oil exporters, announced at the start of this month, have probably accelerated the bullish shift.

But production cuts are a second-order effect. The rise in oil prices has been primarily driven by greater optimism about the outlook for global trade and the economy next year (tmsnrt.rs/2PSMGgW).

Manufacturing surveys and data on industrial production in the United States, China, India and Germany have all started to show tentative signs that the recent slowdown in global growth and trade may be bottoming out.

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