Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Global geopolitical shocks tend to decrease oil prices as falling global activity out-weights risks to commodity supply, according to a note in the ECB's January Monthly Bulletin, although they accept "not all geopolitical shocks are alike".
Shocks originating from important oil producers can increase oil prices by between 0.8 and 1.5% on impact, the report notes.
According to the note, price pressures on oil arising from geopolitical shocks are typically short-lived and disappear after one quarter. That would suggest it is easier for policymakers to look through wider inflation implications of such events. "Recent heightened geopolitical uncertainty stresses the need to identify the nature of geopolitical shocks to disentangle their effects on oil prices and inflation," the bulletin noted, mentioning subjects likely to be discussed when MNI hosts Governing Council member Boris Vujcic on Jan 11 (INVITE:Livestream MNI Connect Video Conference with ECB Vujcic)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.