Oil
“Sun Worldwide”, the Asian-based asset management firm, believes that the recent surge in the price of oil is largely based on expectations of a solid recovery in the Chinese economy
The firm believes that if the price of oil continues to rise, it could jeopardize the so-called “green shoots” of recovery allegedly sighted by US and UK politicians.
An individual familiar with analysts at “Sun Worldwide” said the firm is mindful of the effect that recent debasement of value in both the US dollar and the Great British Pound will have on inflation in the months going forward. He suggested that as sterling has effectively lost so much of its value against the dollar, the amount of pounds needed to purchase a barrel of oil which is priced in dollars would increase by a significant amount.
“Sun Worldwide” have made no secret of their belief that China would recover far more quickly than the debt-ridden Western economies and have advised clients to continue acquiring oil stocks in preparation for what they believe will be a surge in consumption in the world’s third largest economy.
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