Oil: Decline driven by a combination of supply and growth concerns – Danske Bank

Analysts at Danske Bank explains that the oil price dropped substantially yesterday and Brent oil touched USD 56/bbl for the first time since October 2017.

Key Quotes

“The decline in the oil price appears to be driven by a combination of supply and growth concerns. The latter clearly also represents a supporting factor for the rally in global fixed income markets where the 10-year US Treasury yield declined 4bp yesterday to the lowest close since May at 2.807%, while the 10-year Japanese government bond yield has dropped to around 0.01% this morning.”