Economic Growth Absorbs Opec Shock

摘要

Oil prices were barely changed over the week as hopes of a strong global economic recovery post Covid-19 helped offset planned increases in Opec-plus production. International benchmark Brent ended the week down 34￠ per barrel at $63.20/bbl, while US pricepin West Texas Intermediate finished 44￠/bbl higher at $59.60/bbl. Markets have been volatile since a brutal session on Mar. 18 in which oil prices tanked by 7%, and observers say they are likely to remain choppy as traders cope with oversupply fears and stubborn outbreaks of Covid-19 in many parts of the world. Nonetheless, in its latest global economic outlook report published Apr. 6, the International Monetary Fund (IMF) forecast that global GDP would grow by 6% in 2021, up from 5.5% in its previous assessment in January. The US will see an expansion of 6.4% due to massive stimulus programs, and China’s economy will grow 8.4%, the IMF said.