Sun, Mar 29, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Categorized | Market Moves, Oil more

Oil is in a bubble that ‘will burst eventually and the question is not if, but when’

Posted on 10 December 2013

Oppenheimer oil analyst Fadel Gheit believes oil prices are in a bubble. Gheit says 20-30% of the current oil price reflects a “supply risk premium” that will disappear when Iran’s nuclear issue is finally resolved.
“We believe the current oil price bubble will burst eventually and the question is not if, but when and to what level,” writes Gheit in a note to clients. “Oil prices in the $75-$85 range would help spur global economic growth, keep inflation low, boost consumer confidence, and still fund many new oil projects. Settling the nuclear issue could open Iran’s vast oil and gas resources to western oil companies, increase supplies, lower oil prices and squeeze speculation out of the picture.”……………………………………….Full Article: Source


 Article link

This post was written by:

VRS - who has written 39856 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
banner
March 2015
S M T W T F S
« Feb    
1234567
891011121314
15161718192021
22232425262728
293031