Macro Outlook: Market backdrop still bearish

Published on 26 October 2011

Oil prices have recovered some lost ground since the plunge of August and September driven by optimism that the sovereign debt crisis can be contained. Although a financial meltdown will probably be avoided, the macroeconomic outlook remains challenging in the OECD and is deteriorating in the developing world. The upshot is likely to be weaker near- to medium-term oil demand growth than is expected by the bulls and a subdued trend in prices.

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