23.01.2015 - Oil price could spike to US$200 a barrel
Rampant speculation by hedge funds and a rare confluence of short-term shocks have driven the price of oil far below its natural clearing level, coiling the springs for a fresh spike this year that may catch markets badly off guard once again. “The price will rebound and we will go back to normal very soon,” said Abdullah Al-Badri, Opec’s secretary-general. “Yes, there is an oversupply, but fundamentals don’t justify this 50% fall in price.” Claudio Descalzi, chief executive of Italy’s oil giant ENI, said the last phase of the price crash from US$75 a barrel to around US$45 was driven by wild moves on the derivatives markets. “What we need is stability: a central bank for oil. Prices could jump to US$150 or even US$200 over the next four or five years,” he said...............................................Full Article: Source
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