QE2 'myth' may hurt oil market

10/04/2010
A "general Wall Street myth" that a second round of "quantitative easing" of the economy (QE2) should prove bullish for oil through the lower dollar index may prove bearish instead.QE1 was the Federal Reserve Bank's unprecedented purchase of debt to prop up the housing market and credit facilities for big banks."Our view is that QE is in reality bearish for oil," said Olivier Jakob at Petromatrix, Zug, Switzerland. "First, QE is being applied because of a weak economy, and it is expected that the Fed will slash its US gross domestic product growth outlook for 2011. Low GDP is not good for oil demand."Second, he said, "Interest rates at zero and...
read-story

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.

 

Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected