Cornerstone Worldwide are thought to believe that OPEC will cut production of oil in response to reduced demand in light of the onset of a global slowdown.
Sources close to Cornerstone Worldwide say that the cartel is keen to ease pressure on spare capacity if the world is not going to need as much oil. Mounting concerns over a slowdown in the global economy have seen the price of oil drop dramatically from its peak of $147 in the summer to under $90 in recent days. Some OPEC members have called for the price to be kept above $100 in response to the weakness of the US dollar.
Cornerstone Worldwide’s sources said that the 100 basis point cut in interest rates by the Reserve Bank of Australia may be seen by markets as heralding a round of rate cuts by other central banks keen to shore up their economies.
Cornerstone Worldwide reportedly maintain their bullish stance on crude oil and continue to acquire attractively priced oil exploration and services company stocks on behalf of clients.
