Asian markets started the week higher, as Wall Street gains and firmer oil prices seem to bring the stock market up. Remains to be seen whether this optimism would hold true, as production and record levels of inventory would likely see oil prices continue to be kept low.
Key news pieces to read:
Oil Price Rise Could Be Its Own Undoing: A sequential breakdown of the commodities sector, writers Nicole Friedman and Ira Iosebashvili cover the possibility of a self-defeating rally in oil, as seen in metals (copper, aluminum, zinc) as well as cotton. The idea behind this? Cost reductions (again) but matched in line with slower-than-expected inventory workdown.
Competing Goals Make Saudi oil policy hard to predict: Economist Meghan O’Sullivan approaches the oil crisis from its core: geopolitics. From evaluating Saudi Arabia’s choice to adopt a market share strategy; matched with the present issue of convincing its partners to adopt the freeze has created a problem for those only focused on the economic upsides.
Could Oil Prices Double-Dip? Michael Lynch gives a much-needed insight on the OPEC countries’ discussions, variances in sentiment and capping production would make up for battered oil prices.
Oil Price Collapse: Is It Different This Time? Noe van Hulst comments on the shift away from ‘conventional wisdom’ i.e. oil price declines driving economic growth. His piece gives a succinct macroeconomic perspective, on the long-term implications of low oil prices and limited group of consumers.