Oil price on the up!! :0)
After a treacherous start to 2016, oil is regaining its momentum, sitting at its highest level for seven months. Many believe that inflationary pressures may be building as oil prices surge towards the $50 a barrel mark. With Goldman Sachs stating that the world is in fact consuming more crude oil than what is currently being produced, the upward trend in prices could be on the horizon.
All eyes on the UK inflation data
Today, all eyes will be on the UK inflation data which is forecasted to remain at 0.5% in April. Last month the higher than expected figure was driven by a rise in airfares, however, economists believe that was due to hiked prices over the Easter festivities. A higher reading today could see the pound drive higher as well as increase speculation about whether or not the BOE will look at raising interest rates after the EU referendum.
Expected increase of the US inflation figures
Across the pond this afternoon, we have the US inflation report for April. The figure is expected to show a slight increase as the US central bank watches closely, following their interest rate late last year. With the input of a quarter point rise from the Fed, and Fridays retail sales figures coming out significantly stronger than expected, they are still predicted to keep a cautious tone to steady their economy.
Have a good week
Specialist Finance & Investment Recruitment in the Middle East
8 年Hello John, how the devil are you? 1999 seems like an age ago now, but glad you are keeping well!? I hear your comments and they are credible stats which you've provided, and exactly what I'd expect from a subject matter expert. My market analysis tends to veer towards positive sentiment which I see in the global market. There's so much negativity in the media, geo-political situations and the world economic environment that I think there's little point in regurgitating what we already know, in my opinion. While your comment is correct, you can't argue against the fact that the oil price has improved and that's a huge indicator when you're based in the Middle-East and working in a B2B role where your ability to build healthy relationships depends on investor confidence, liquidity flow and healthy balance sheets. Fortunately the region is heavily capitalized so it's not all bad! Hopefully this positive trend continues and all the unfortunate people who have suffered due to the recent oil & gas crisis are able to find quick and enjoyable employment to support their lifestyles, families and general well-being: Great to hear from you old chap and good luck in your new role. Rak Sudra