The abrupt fall in crude oil prices, considered a blessing not so long ago, is now seen as increasingly troubling. West Texas and Brent crude prices fell from over $100 a barrel in 2014 to just $30 last Friday, a 12-year low. Although the drop in crude waw initially welcomed, many fear that current low prices may bring with them more problems than solutions.
Following the oil price slump, both wealthy countries will relatively see their privileged economic position trimmed, but they can still capitalize on their status as oil producers, boosting production to defend market share and leading the European M&A market, respectively.
London | UBS | At the risk of making an obvious point, the fall in crude oil prices is not all there is to the impact of oil on consumer price inflation.
Cheaper oil and electricity pushed prices down by 0.3% in August compared to the previous month. In year-on-year terms, prices dropped by 5 basis points or 0.4%.
There has been a severe downward correction in global expectations in August.
LONDON | UBS | Lower oil prices are evaluated as essentially “a wash” for the US economy.
Global oil demand in 2015 is set to grow at the fastest pace in 5 years, underpinned by the economic recovery and low oil prices.
The US economy is gaining momentum in the second quarter with an estimated 2.3% growth, supported by consumption and construction investment.
MADRID | April 8, 2015 | By Sean Duffy | The takeover of BG by Royal Dutch Shell for £47 billion (€64.8 billion) could be the opening salvo in a race to hoover up energy firms, as oil giants look to take advantage of a liquidity glut by honing in on companies destabilised by the volatility on oil markets.
The Corner | March 30, 2015 | Consumer confidence in the EMU is set to hit its highest level in eight years, with economic sentiment improving across the currency block. In Spain, inflation figures are expected to remain in negative territory, but with the caveat that lower prices are having positive knock-on effects elsewhere in the economy.