In today’s recipe, we will learn how to send oil prices down by $10/bbl. Start with a good helping of inflationary pressures, a dollop of rising interest rates, a sprinkle of US banking turmoil, a spoonful of anxiety over a potential US default, and finish off with a dusting of weak Chinese data. Mix well, bake for four weeks, and voila!
It is cumbersome task to go through a wealth of conflicting signals and draw a conclusion whether the current investment climate suggests a sanguine outlook for the balance of the year or those who expect renewed strength will be left bitterly disappointed.
With less than two weeks to go before the US runs out of cash, optimism is building that both sides of Congress will come together to prevent the unthinkable. Policymakers in Washington hinted yesterday that a bill to raise the US debt ceiling may be put to a vote next week. This encouraging development spurred hopes that the current deadlock will follow the same outcome of previous standoffs, namely that there will ultimately be some kind of agreement.
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