International News – 27 May 2016
I’ll be quick this week, there wasn’t a huge amount to remark upon.
Oil made it back through $50 a barrel and is now 66% off its lows as US inventory depletion is finally starting to occur.
It feels like we could see $60 a barrel in the coming months, but I wouldn’t bank on much more than that on a 12 month view, as some of the production curtailments to have helped spur the inventory run-down are temporary in nature.
But the lows are in.
The US economy took heart from a 22 year high in new home sales last month and alongside it we saw 6 year highs in new mortgage applications.
US housing is alive and well and is arguably giving the Federal Reserve sound grounds to raise interest rates again there in the coming months.
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