User: Brian Ripley: Euro Economy: Y/Y Global Growth in Energy Products
Y/Y Global Growth in Energy Products
There are several reasons why lower crude oil prices so far seem to have failed to stimulate demand. Those include heightened deflationary risks in both Europe and Japan; adverse revenue impacts on net-oil-exporters; a global trend towards reductions in energy price subsidies and/or increases in oil consumption taxes; and the heavy falls experienced by many currencies, versus the US dollar, negating the impact of lower crude prices in domestic currency terms. (International Energy Agency) Preliminary data suggest that with the notable exception of the U.S. weak global demand conditions continue to act as a depressant on prices, as opposed to low prices stimulating additional demand. More charts at www.chpc.biz
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