Central banks such as the U.S. Federal Reserve will be crucial in determining the state of global growth and the overall health of the energy sector, according to the latest monthly report from oil producer group OPEC.
In its latest September report, the 14-member oil producing cartel said that the trend of “moderate” global growth was likely to continue in 2016 and 2017 and that imminent central bank decisions and political developments were likely “to be influential.”
“There are several key dynamics across the globe that are significant (to global growth) in the short-term, OPEC said on Monday before commenting on the effectiveness of central bank stimulus programs.
“Interest rates are already low in major economies and the effectiveness of further monetary stimulus has diminished, despite remaining crucial for some economies. Here, any decision from main central banks on monetary policies, particularly the U.S. Fed, will continue to be influential. Moreover, in most key economies the space for fiscal stimulus seems to be limited given high debt levels.” it said.