How Richard Soultanian and his team at NUS Consulting Group read the situation.
Last year I published my thoughts on how the oil price decline, then still only half-way to today’s levels, might not turn out to be as beneficial as most analysts thought (OIL, OIL… SO MUCH OIL). I still think that balance sheet pressures are more important than consumer spending benefits.
Today I’d like to share, with permission, a concise opinion piece by NUS Consulting Group. In essence things may not necessarily get worse than now, but have little chance of getting better anytime soon.
I won’t expand on the supply issues discussed in the paper. As global demand goes, I reproduce an updated graph from the above-mentioned post which does not offer a pretty picture: world activity appears set to slow down further.
Source: Bloomberg; Orthos Advisory calculations.
Photo source: Bloomberg.