Here Come the Petrodollars, Back to Save Global Asset Prices
- Surging oil prices to enrich sovereign wealth funds: JPM
- Benefits will fall more to stocks than bonds, euro than dollar
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The recent surge in oil prices is poised to boost global assets as crude-producing states deploy replenished stashes of petrodollars, according to a growing chorus of analysts.
It’s the potential reversal of part of the global "quantitative tightening" that was said to have occurred as oil prices dropped precipitously, and could amount to an extra shot of liquidity at a time when central banks are beginning to normalize monetary policy.