Oil prices remain a threat to markets – SocGen

FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that oil prices remain a threat to markets as oil producing countries and companies re-think the medium-term outlook.

Key Quotes

“Weak oil prices will be a major factor behind default rates in 2016 and even if the latest rush of forecasts of oil reaching USD 25/20/10/bbl aren’t proven right, the damage has already been done. This pretty much guarantees that the trend in global FX reserves will be firmly downwards this year.

Russel Napier, the guest speaker at the Albert Edwards/Andrew Lapthorne bear party yesterday, reckons investors should steer clear of emerging markets until reserves start increasing again, which didn’t fill me with confidence at all.”

Kit Juckes, Research Analyst at Societe Generale, suggests that oil prices remain a threat to markets as oil producing countries and companies re-think the medium-term outlook.

(Market News Provided by FXstreet)