• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 24 mins Why Trump Is Right to Re-Open the Economy
  • 26 mins A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 4 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 5 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 11 hours Wouldn't fall in demand balance it out?
  • 7 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 7 hours Its going to be an oil bloodbath
  • 12 mins CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 19 hours Free market or Freeloading off the work of others?
  • 19 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 20 hours ‘If it saves a life’: Power cut to 1.5 million Californians
Martin Tillier

Martin Tillier

More Info

Premium Content

Oil Looks Set For A Significant Drop As Bad Data Piles Up

The last 72 hours have not been good for the prospects for the global economy, and therefore for the price of oil.

On Thursday, the European Central Bank (ECB) surprised most observers by reversing course on monetary policy. They announced that they were suspending interest rate increase, at least until the end of this year, hinted that they may even return to cuts and possible negative rates, and reintroduced a program of discounted lending to banks designed to promote growth. In some instances, loose monetary policy like that could be well received by the market, being seen as a needed and welcome shot in the arm. The problem here though is not the actions taken, but the reason for them.

Mario Draghi, the ECB Chairman talked of risks to growth that were “…still tilted to the downside…” and cut the bank’s estimate for growth in the Eurozone from December’s 1.7% to a very weak 1.1%. He also mentioned negative rates, which suggests to many analysts that even that may be optimistic.

Now after news from China and the U.S. on Friday, Draghi’s pessimism looks warranted and more like a serious warning than anything.

China released their balance of trade data last night that showed a drop in exports of well over twenty percent from a year ago. Imports were also down significantly, indicating that while the ongoing trade dispute with the U.S. is definitely a problem, the country is a deeper-seated growth issue for…






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News