By Divya Chowdhury
Expert Analysis: Global Growth Concerns Overblown, No Evidence of Imminent U.S. Recession
In a recent interview, Amrita Sen, director of research at consultancy Energy Aspects, dismissed market fears about global growth, stating that there is no indication of an impending U.S. recession. Despite disappointing Chinese growth and signs of a U.S. slowdown, Sen remains optimistic about the global economy.
She explained, “I don’t think what we saw on Monday is a one-off. We will likely get a few more rounds of macro meltdowns, but oil’s own fundamentals are stable.”
Market Update: Global Shares Recover, Oil Prices Set for Weekly Gain
Following a turbulent week, global shares have rebounded, erasing most of the losses incurred during the sell-off. Oil prices are on track for a weekly gain of over 3%, recovering from an 18% drop since April.
Forecast: Stable Growth in Oil Demand Despite Global Slowdown
Energy Aspects predicts a steady increase in oil demand, with 2024 projections showing growth of 1 million barrels per day compared to the previous year. Despite concerns about weak Chinese demand, Sen remains confident in the stability of oil fundamentals.
Analysis: Balanced Market with Adequate Spare Capacity
In the coming years, non-OPEC countries are expected to increase crude supply by 1.4 million bpd, while demand is projected to rise by 1.2 million bpd. Sen reassured that even if non-OPEC supply falls short, there are sufficient stockpiles to mitigate any shortages.
Looking Ahead: OPEC’s Role in Maintaining Market Balance
Sen suggested that OPEC may delay bringing back excess barrels to the market, but emphasized that there is ample spare capacity to stabilize oil prices. Overall, the market remains balanced with adequate room for adjustments.
(Join GMF, a chat room hosted on LSEG Messenger: )
Analysis: Despite concerns about global growth and market volatility, the expert opinion from Amrita Sen provides reassurance that the global economy is not heading towards a sudden downturn. The recovery in global shares and oil prices indicates a resilient market that is able to withstand macroeconomic challenges. With stable growth forecasted in oil demand and a balanced market outlook, investors can find confidence in the long-term stability of the oil market. It is essential for individuals to stay informed about these developments to make informed decisions about their investments and financial well-being.