Crude oil on a slippery slope, but traders continue to be bullish


Crude oil on a slippery slope, but traders continue to be bullish

No one likes bad news; market and its bulls are no different. If it were just a small insignificant cautions to the wind, it would still be brave to ignore, but to ignore glaring evidence that the global markets are heading towards an economic slowdown, if not already in one, could be dangerous.

The chorus of caution from leading central banks should not be ignored. There have been rampant downward growth revisions across geographies and economies, the latest being the announcement by the ECB president Mario Draghi, who on Thursday revised the GDP growth numbers downwards for 2019, from 1.7 per cent forecast in December 2018 to current forecast of 1.1 per cent.

The inflation number for 2019 too was revised downwards to 1.2 per cent from the December forecast of 1.6 per cent. While the US economy remains a rare exception to the norm, with continued flow of positive data, but there too we are witnessing signs of stagnating growth numbers. Read More

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