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REview: Rate cuts, stimulus, the Middle East, OPEC+ cuts and spare capacity
The US Federal Reserve finally announced a change in its monetary policy, lowering its benchmark lending rate by 50 basis points in its first rate cut in four years. The cut came in on the higher side of what many expected, given its cautionary approach so far. We believe soft-landing is in sight for the US economy. In China, the government has announced a slew of measures at boosting economic growth – being dubbed as the biggest stimulus since the pandemic.
In the world of geopolitics, the Middle East has seen a sharp escalation in conflict as Israel and Hezbollah exchange intense fire, following one of the deadliest attacks in Lebanon since the war between the two in 2006.
Yet, despite the many factors that should theoretically be bullish for oil markets, prices remain under pressure. To discuss the impact of the potential policy changes and geopolitical uncertainty, Manash Goswami, Vice President of Analytics, is joined by Claudio Galimberti, Head of Macro Analysis.
We look forward to joining you again for our next edition.
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Authors:
Claudio Galimberti
Global Market Analysis Director
claudio.galimberti@rystadenergy.com
Manash Goswami
Vice President, Analytics
manash.goswami@rystadenergy.com
(The data and forecasts contained in this column are Rystad Energy’s and the opinions are of the authors.)