The head of Norway’s central bank, Oeystein Olsen, says that Brent needs to trade above $70 to ease the pressure on their monetary policy. Speaking after Norway surprisingly cut rates yesterday, he says that developments in energy markets are playing a more crucial role in policy settings.
Market watchers have now shifted to watching the oil price to gauge further moves from Norway.
Oil is big bananas for Norway and these sorts of events are going to be common place throughout oil producing countries, many of which (particularly smaller OPEC nations), were dunked underwater when oil broke below $100. A sustained period of low prices is going to have a big effect of producing nations economies. To be honest I’m surprised we’ve not heard more shouting from the ranks.
Last month Norway were ranked top in the most prosperous country list. A few more months of low oil prices and they’ll be sliding down the ranks.
Norway’s central bank head hoping to hear oil prices go “boing”
