Energy aspects ease recession fears, expect oil demand to stabilize
Date
8/11/2024 6:00:43 AM
(MENAFN) Amrita Sen, the co-founder and director of research at energy Aspects, addressed recent market anxieties about a possible global economic downturn, suggesting that fears of an imminent recession in the U.S. might be exaggerated. During her remarks, Sen pointed out that there is no immediate evidence suggesting a drastic collapse of the global economy. Despite some underwhelming growth figures from China and a noticeable deceleration in the U.S., Sen argued that these developments have led to increased caution among policymakers, but do not necessarily signal a severe economic downturn.
Sen also commented on the recent sell-off in the markets, which was driven by a decline in yen-funded trades. She suggested that such market movements could be part of normal fluctuations rather than indicators of an impending financial crisis. While acknowledging that further market volatility is possible, Sen reassured that the fundamental aspects of the oil market remain stable. This stability provides a counterbalance to the current economic uncertainties.
Looking forward, Energy Aspects anticipates a rise in global oil demand by over 1 million barrels per day in 2024. This forecast is based on historical trends observed during previous periods of global economic slowdown. However, Sen noted that the short-term focus in the market will likely remain on demand dynamics, especially given the current economic challenges facing China.
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