Silver Ridge Resources says that oil prices tell of more than just an oversupply issue.
Silver Ridge Resources, the China-based investment boutique house has warned clients that they should be looking at current oil prices as a canary in the global economic coal mine citing a steady erosion in world demand as being just as much to blame for the sharp declines as the glut in supply.
Vivian Ericsson, who heads commodities and resources research at Silver Ridge Resources explained, “Despite the assertions of the cheerleaders talking up the economic recovery in the US, oil prices are telling us something completely different”
Oil prices were last at current levels in 2008 when they fell from an all-time high of $150 to $35 in the space of a few months; this was followed by a deep and painful economic recession. Silver Ridge Resources believes that this chain of events is likely to repeat itself unless the Federal Reserve steps in with more monetary stimulus.”
“Although oversupply is widely blamed for the price falls, one has to remember that oil production has been at or around these levels for the last couple of years so one has to ask ‘what’s changed’. The only thing, as far as we can tell, is that the Fed’s ended its quantitative easing program and worries have grown over global demand,” added Ericsson.
Silver Ridge Resources tells clients it believes that the US summer driving season will be the first glimmer of hope for a revival in the demand story but adds that Fed policy plays a part that markets have yet to factor in again. “Investors think that the QE story is over but we’re certain it will return as the economic picture in the US becomes less rosy,” concluded Ericsson.
About Silver Ridge Resources:
Founded in 2005, Silver Ridge Resources is an independent, full-service brokerage, investment planning and management concern committed to delivering innovative capital appreciation and preservation solutions to individuals and families with a high net worth. We place the welfare of our clients and their families first and we pride ourselves on having become the first port of call for their financial affairs. We consistently exceed our clients’ expectations by going the extra mile in terms of attention to detail, delivery of service and, most importantly, returns on investment.
From our headquarters in Shanghai, China and offices around the Asia Pacific region, we currently oversee the deployment of over $4.5 billion of assets on behalf of clients both in Asia and around the world.
Contact Silver Ridge Resources:
681 Haining Rd
Zhabei, Shanghai
200085
8675586243512
info@silverridgeresources.com
http://www.silverridgeresources.com