Today’s OPEC+ meeting confirmed several things. They prefer to boost revenues prices in the face of weak demand. OPEC has little interest in making it easy for the G7 to implement the price cap. There was a need to reset targets to (partly) adjust for massive under production from many producers producers are concerned about… Continue reading OPEC+: Not a mega cut
In late August, I spoke with Gridnews about the risks to the energy, economic and political risks associated with the energy price spikes in Europe and the globe exacerbated by the conflict with Russia. While Europe has many more policy levers to cushion their populations than poorer countries, the costs will mount, economically and politically.… Continue reading European ‘perfect storm’: Impacts of energy crisis
at the start of July I spoke to CNBC Asia about the oil, products and natural gas balances. While there are starting to be some signs of demand destruction, especially in the US where gasoline demand is softening compared to 2021, demand is still near historic highs. Moreover other issues including how to manage the… Continue reading Energy: signs of demand destruction? Do they outstrip supply risks?
In early July 2021, OPEC+ faced several public challenges to its medium-term supply outlook as it looked to extend its production agreement and allow for a long awaited increase in oil production. On the July 1 meeting the UAE blocked agreement of the near-term agreement (production increases through year end and commitment to current levels… Continue reading OPEC+: Cohesion harder, as fundamentals tighten
Next week’s annual meetings of the IMF and World Bank come at a key inflection point for the global economy as partial recoveries across major economies have stalled and Covid infection rates rising or remaining high in many developed economies and some emerging markets. This post surveys some of the trends I'm watching for at… Continue reading Looming Questions for the IFI Annual Meetings
COVID19 and its policy response has been damaging to global growth and a sharp global recession is now the base case. Most major economies are likely to experience sharp recessions as economic activity is shut down to avoid over-taxing the health care system. Globally this suggests rolling recessions, albeit very close on their heels beginning… Continue reading Economic Challenges of Covid19: Deepening Recessions
I recently updated some macro scenarios around the impact of the novel coronavirus (covid19) which update my initial thoughts and my early 2020 risk scenarios. This companion post looks at some of trends which will shape not only the near-term scenarios but may shape any eventual recovery. Many economists are expecting a V-shaped recovery when the… Continue reading Potential Longer-term Implications of Covid19
This piece updates my earlier analysis (late January) on Covid19 and is accompanied by a short note that looks in more detail at some longer term trends. My January analysis highlighted the importance of the policy response including the quarantines and travel cancellations in driving economic impact, making the impact unprecedented. The global economic impact began… Continue reading Assessing the Next Wave of Macro Stress from Covid19
The coronavirus onset in China and escalating policy response has hit global markets over the last week investors fear that it will hurt global growth. The policy response has shut down many key transport nodes and forced quarantines of urban areas where over 50 million people live. Meanwhile, many international airlines and stopped flights to… Continue reading Economic impacts of the Novel Coronavirus: What to Watch
Since early December, global market sentiment has been quite upbeat, as developments seen as risks including a tit-for-tat tariff escalation, an acute, unplanned and hard Brexit and (premature) monetary tightening and credit stress receded. These reinforced our view that global recession was unlikely, though growth remains relatively sluggish. All these trends and continued monetary support… Continue reading Global Scenarios: What Can go Wrong?