Is Surging Global Liquidity About To Send Black Gold Soaring Too?
Authored by Simon White, Bloomberg macro strategist,
Oil prices are set to rebound due to a historic rise in global liquidity.
These are strange days indeed. Policy has been eased in an economy showing scant definitive signs of accelerated slowing. Liquidity conditions, which were already robust, have been turbocharged, leading to a surge in excess liquidity to near all-time highs. The impact on the market and the economy will be manifold, but one of the most outsized effects may well be seen in oil prices.