The decline of commodity prices: A matter of concern?

Oil and metals prices are down significantly this year
For oil this seems to be predominantly driven by supply factors
The decline of metal prices probably reflects the softening of global growth
There is a clear negative relationship between oil price changes and subsequent US real GDP growth
US growth is expected to face a number of headwinds in 2019 but the decline of the price of oil should act as a tailwind

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BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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