We have an oversupply. Iraq right now is producing very much. Even in Libya, where they have civil war, they are still producing. The U.S. is now producing shale oil and gas. So, theres oversupply in the market. But also demand is weak. We all know Japan is hovering around 0% growth. China said that theyll grow 6% or 7%. Indias growth has been cut in half. Germany acknowledged just two months ago they will cut the growth potential from 2% to 1%. Theres less demand, and theres oversupply. And both are recipes for a crash in oil. And thats what happened. Its a no-brainer. Q: Will prices continue to fall? A: If supply stays where it is, and demand remains weak, you better believe it is gonna go down more. But if some supply is taken off the market, and theres some growth in demand, prices may go up. But Im sure were never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial. Its not correct. usatoday/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/
Posted on: Mon, 12 Jan 2015 02:22:35 +0000
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