From our latest Investment Newsletter…
Global economic weakness and deflationary forces were still at work in the first quarter of 2016. Volatility and uncertainty remained stubborn themes, with markets reacting to major central bank decisions and potential oil supply resolutions.
Global oil prices remained weak throughout the quarter, but rebounded from their lows. Oversupply continued to hamper price recovery, with the International Energy Agency (IEA) estimating that worldwide supply rose by 2.4% in 2015. OPEC showed no sign of cutting production by any meaningful amount, while the lifting of sanctions on Iran allows an additional supply to re-enter the market. Meanwhile, reports surfaced of strain within a number of oil-producing countries, including Russia, Venezuela and the Middle East.
Read our full account of the quarter here.