Oil’s Fall Into $60s Widens the Runway for the Global Economy to Make a Soft Landing

  • Oil fell to lowest since 2021 on weak demand, plentiful supply
  • ECB, Fed are poised to reduce borrowing costs in coming days
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The world’s advanced economies might just have a new reason to hope for a firmer growth footing in the next year, if some of the most bearish forecasts for oil hit the mark.

With global benchmark Brent crude falling below $70 a barrel for the first time since late 2021 on Tuesday, a key component of the energy shock that drove the worst inflation crisis in a generation is already benign enough to give policymakers a green light for interest rate cuts.