Global Growth

BCA Research comments that the Global Leading Economic indicators are looking up. They say that, "while global industrial production growth is set to slow in the months ahead, these leading indicators imply that downside risks to growth are limited and that a renewed bout of strength is likely in the second-half of 2007."

This makes sense given a lack of significant pull-back in the US economy and a world economy that is increasingly less dependent on the U.S. In a addition, many countries of the world are in much better financial and political shape than they were in the mid/late 1990's. If the world economy grows from here, we would not expect oil to decline much beyond current levels, which is perhaps a contrarian viewpoint these days.