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Oil Continues Ascent | Germany Recession Fears Mount
Published January 8, 2019
Oil continues to rise, supported by hopes that talks in Beijing between US and Chinese officials might defuse a trade dispute between the world’s two biggest economies, while cuts in production promised by the OPEC also tightened markets. WTI crude prices have hit a high of $49.58.
German industrial production unexpectedly dropped in November, a development that’s likely to fuel concerns that Europe’s biggest economy may have entered a technical recession in the final quarter of 2018. Data from the Federal Statistics Office showed industrial output was down by 1.9 percent, missing economist estimates for a 0.3 percent gain.
Atlanta Fed President, Raphael Bostic, said the central bank may only raise interest rates once this year. Though US economic growth surprised to the upside in 2018, and prompted the Fed to raise rates four times, Bostic said his business contacts appear less confident about the coming months, while clouds have developed overseas.
President Donald Trump is due to address the nation on the national security crisis. Trump will give a prime-time address from the Oval Office Tuesday evening in an apparent effort to convince lawmakers to fund a border wall, a demand that’s led to a more then two-week partial government shutdown.