Sources close to ‘Sun Worldwide’ suggest that the private fund is convinced that the demand destruction that oil-importing countries say will keep oil prices low for the foreseeable future is set to evaporate and deliver a shock to economic stimulus measures being undertaken around the world.
One of the ‘Sun Worldwide’ sources opined that, in stark contrast to the US and the UK, stimulus packages in China were actually feeding through to the economy. He cited a huge jump in bank lending to Chinese consumers and businesses, a feat which had so far eluded their counterparts in Western economies.
This, suggested the ‘Sun Worldwide’ source, meant that increased domestic demand would see less reliance upon the export sector which was so instrumental in China’s rapid economic growth in the previous decade.
‘Sun Worldwide’ recently reiterated its advice to buy oil exploration and producer stocks on market pullbacks with a view to holding for long-term gains.
