Technical & Fundamental Oil Reports Specialists

Follow us

A wobbly start to the New Year

Published Monday, January 12th, 2015

2015 has not begun well. Clearly not for oil which saw Brent lose $6.31 bbl last week and touch a low of $48.90 bbl on Friday, but also unconvincingly for other markets. The eurozone is no longer flirting with deflation, it has succumbed; US economic signals are  encouraging above the surface but disconcerting underneath; China is on a credit binge that could end in disaster and there are a weight of geopolitical and terrorist concerns that could sink a battleship.

Nevertheless polls of economists, analysts and investors indicate a level of confidence that does not reflect these concerns. It is as though there is a parallel universe in which common sense points in one direction and opinion when canvassed in another. Perhaps it is a case of not saying for fear of contagion or a case of immunity to alarmism. Paying attention to it last year was costly. Perhaps the explanation is that in a world where QE is the monetary policy of choice there is a warm glow that overwhelms common sense.

to read the rest of the report, please click here

Posted by David Hufton