Commodities fell to a six-week low, following losses in crude oil after European governments failed to agree on a loan payment to spare Greece from default, increasing fear over economic growth and reforms.
In an interview with CNBC-TV18, Jason Feer, vice president (Singapore bureau chief) of Argus Media, said that there is no catastrophic news to push oil alarms. "Slower demand growth in the United States, sluggish economic recovery in Europe, all these factors indicate low demand growth going forward, " he added. Below is the verbatim transcript of his interview with Latha Venkatesh and Anuj Singhal. Also watch the accompanying video. Q: Would you say that this is a result of just not too much of conflagration or big news coming out of West Asia and the slowdown in the US - does this look like it will stay put around the USD 90 level for some time now?
A: I think there are several things that play here. As you said, there is no catastrophic news to push oil alarms. Oil is a news driven market and there has been a lot of news lately, which is a good thing. Another factor which can impact is the slowing demand growth in Asian econmies.
Probably, India and China stand from combination of just the slowing economy and government efforts to reign in inflation in these countries. As you suggested, slower demand growth in the United States, sluggish economic growth in Europe, all of that indicates very low demand growth going forward. So, it
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
