Didier BOROWSKI, Lorenzo PORTELLI, Francesco SANDRINI
the articles & research center news
Fixed Income and FX Strategy
The Brent price has continued to slide at an every greater pace in recent days, catching many analysts wrong-footed who thought the market had bottomed out, thanks to aggressive action by OPEC and expectations of OECD inventory reductions in the second half of the year.
Are markets legitimately fearful? Last summer, the engine went out of whack. The financial markets have been gloomy, as everything has a pessimistic interpretation. How did we come to this? Do we have to significantly revise our economic and financial outlooks?
Philippe ITHURBIDE, Pascal BLANQUE, Vincent MORTIER, Eric BRARD, Romain BOSCHER, Loïc BECUE, Raphaël SOBOTKA
Philippe ITHURBIDE, Didier BOROWSKI, Pascal BLANQUE, Vincent MORTIER
Two key factors are at play: 1) the plunge in oil prices, which are at their lowest level since 2005; this decline is primarily associated with excessive supply (a “price war” between producers, with OPEC attempting to maintain its market share, and tensions between Saudi Arabia and Iran); 2) the concerns over the Chinese market.
Didier BOROWSKI, Eric MIJOT