gulfnews.com The oil price collapse to sub-zero in US could hasten global recover, it could also possibly offer a springboard for recovery when coronavirus lockdowns finally end.
The oil price collapse that took US crude prices sub-zero for the first time in history may turn out to be a silver lining for the world economy, possibly offering a springboard for recovery when coronavirus lockdowns finally end.
Cheap oil lowers transport and manufacturing costs while putting money into consumers’ pockets for discretionary spending â essentially loosening financial conditions.
Yet it can also be destructive, hitting stock markets and oil producers’ budgets while fanning deflation risk.
Oil’s fall, alongside stimulus from the USÂ Federal Reserve and other central banks, has sharply eased financial conditions, according to a liquidity index compiled by consultancy CrossBorder Capital.
