Tuesday, July 21, 2015

Economic Summary for the week ended 22nd July 2015

The first half of the year has been good to oil producers as WTI rallied 11%, after falling 47% over the course of 2014. However, the rollercoaster ride in oil isn’t over yet. Despite some signs of correction, supply continues to flood the market. Saudi Arabia produced crude oil at a rate of 10.5m barrels per day in June, its highest in recorded history (since 1962). Last week’s deal with Iran is likely to add yet more fuel to an already oversupplied fire in the coming quarters. Lower oil prices will hurt producers, but, on the whole, the global economy continues to benefit from these lower energy costs. Hold on tight through the turbulent times ahead.

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