| Oil at $20 per barrel is a stark prediction. Continued global oversupply and China’s increasingly unpredictable economy could make it a reality unless members of the Organisation of the Petroleum Exporting Countries can put aside their differences and agree to deep production cuts. It could happen, if major producers outside the cartel such as Russia co-operate.
Brent crude has tumbled by 15 per cent since the beginning of 2016 to around $32 per barrel on January 12 and a number of major international banks have slashed their price forecasts. Morgan Stanley now predicts that crude could crash to $20 per barrel due to the depreciation of the yuan and fresh supplies of crude from Iran. Goldman Sachs foresaw something similar in November. Opec's smaller members are worried...............................................Full Article: Source
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