Mohamed A. El-Erian: WTI oil drop below $90 helps lift equities to record highs

Mohamed A. El-Erian: WTI oil drop below $90 helps lift equities to record highs
Oil drop boosts equities, yields fall

Mohamed A. El-Erian, president at Queens' College, University of Cambridge, highlights a notable decline in WTI oil prices, with the benchmark now trading below $90 a barrel.

According to El-Erian, this move has contributed to lower government bond yields in advanced economies, which has, in turn, supported several equity indices in reaching new record highs.

El-Erian has previously warned that the economic consequences of war could extend from energy and price shocks to potential demand destruction. In April, he also highlighted Australia’s annual core inflation rate reaching 3.4 percent. These comments reflect his ongoing focus on the interplay between energy markets, inflation, and economic momentum.

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