Oil: Higher prices are lifting global confidence - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, suggests that the recovery in oil prices may be partly due to renewed hopes for supply control from OPEC, but it appears to be helping to stabilize the US economy. 

Key Quotes

“More stable to rising oil prices may be seen as helping lift economic confidence in a number of oil producers, including the US, while tending to boost inflation expectations globally.  Higher oil prices might also be seen as improving the effectiveness of QE/NIRP policies in Europe and Japan, further improving confidence in these economies.  While higher oil prices would reduce the real spending power of consumers, they are likely to still be seen as historically low, keeping consumers in a positive frame of mind.”