Asian-based asset management firm, Brentwood Group, believe that the current retreat in oil prices may be temporary.
An individual familiar with analysts at Brentwood Group suggested that although the world’s major economies would eventually descend into recession, the economies of China and India would more than likely emerge from any slowdown before the US and Europe.
The Brentwood source reportedly reasoned that emerging economies, with consumers and banks unburdened by the indebtedness afflicting those in the West, would see demand for oil increasing more robustly as conditions improved.
Brentwood Group apparently expect OPEC to trim production in response to reducing demand. Saudi Arabia, the world’s largest producer, recently increased production quotas in response to pressure from the US when oil was trading close to its highest levels in the summer. Any such reduction could send declining prices into reverse.
