OECD Demand Back in Reverse

摘要

Although politicians in Washington averted a nightmare scenario with an eleventh-hour deal to raise the debt limit and avoid default, the US and most OECD economies are still in dire straits. Against this backdrop, oil demand in mature markets is again contracting, and is likely to continue declining as long as governments remain focused on austerity measures instead of more stimulus (EC Sep.25'09). Actions to shore up consumer demand and confidence - such as government spending, quantitative easing and tax cuts - have mostly run their course. "There is a whiff of double dip in the air again and there can be no pretence of emerging economies having decoupled," says David Hufton of brokerage PVM. "This bodes badly for commodity demand."