This is why oil prices should go up from here - Mar 21

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

This is why oil prices should go up from here - Mar 21

Post by dan_s »

OECD raises global growth forecast and says inflation still main challenge < If this is true, demand for oil will increase and the price of oil should increase because supply growth will not keep up with demand.

OECD raises its 2023 global GDP growth forecast to 2.6%, up from 2.2% in its previous projection, as inflation moderates and China reopens. It also expects a 2.9% growth in 2024. Remains below 3.2% expansion in 2022 with all but two G20 economies (China and Japan) projected to have slower growth in 2023 than in 2022. Warned improvement in outlook is still fragile with risks "somewhat better balances but remain tilted to downside". Argued further rate increases still needed in many economies until clear signs that inflationary pressures are lowered durably. Added headline inflation is declining but core inflation remains elevated on strong service price increases and tight labor markets. Bloomberg noted OECD chief economist Alvaro Pereira said inflation is still global economy's biggest problem, overshadowing concerns of financial stability linked to banking sector woes. Pereira also said OECD doesn't "see systemic risk on the cards".
Dan Steffens
Energy Prospectus Group
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