Oil could crash to $10 a barrel, warn investment bank bears

Telegraph (UK) ^ | 12 January 2016 | Mehreen Khan

[Lorianne]

Petrol prices could fall back to levels last seen in 2009 in a $10-a-barrel world as major banks say there is no bottom in sight for the world's lopsided market __ Oil prices have fallen to fresh lows of less than $30 a barrel amid warnings the price rout could reach as low as $10 and bring down petrol prices to levels last seen in 2009.

Standard Chartered became the latest major bank to downgrade its oil outlook, joining the likes of Goldman Sachs, RBS and Morgan Stanley in making ultra-bearish calls as prices have collapsed by 15pc this year.

Brent crude has now slipped to a fresh 12-year low of $30.41 a barrel, while West Texas Intermediate - the US benchmark - is trading at $29.93. Analysts warn the oil market remains fundmentally out of balance as record over-supply and stagnant demand weighs on traders.

[Buckeye McFrog]

Hardly worth the effort to scrape it off the birds and seals at that price.

[ManHunter]

Well, if it does, I’m investing in oil. It won’t stay there for long.

[doldrumsforgop]

“Oil could crash to $10 a barrel, warn investment bank bears
“

And yet we stupidly continue to insist on subsidizing ethanol, solar and wind so Americans can pay more, and the entrenched in power can hand out goodies to their rich buddies who control those interests.

[Noob1999]

Just wait a few months until the Saudi Iran problems heat up.

closing the Strait of Hormuz to tankers will rapidly return us to the $100 mark!

[doldrumsforgop]

“closing the Strait of Hormuz to tankers will rapidly return us to the $100 mark!”

Or what do you believe the price might go to if Russia obtains Saudi Arabia, a country SA believes to be “A Great Power?”, as Obama distances the US from SA?

http://www.cnbc.com/2016/01/06/saudi-arabia-russia-relations-must-improve.html

http://www.bloombergview.com/articles/2016-01-05/obama-s-middle-east-balancing-act-tilts-toward-iran

[Night Hides Not]

closing the Strait of Hormuz to tankers will rapidly return us to the $100 mark!

At which point my two twenty-something YO children will sheepishly say, "you were right, Dad, I should've put some money into energy funds as you suggested." lol

[boycott]

I wonder if Obama’s Saudi pals are trying to help him out before he leaves. Hussein Obama would be able to say the economy was good overall (but not in oil producing states because of low oil prices). He could say the price per gallon was less to families.

Obama is also playing a new high risk mortgage game. I believe this is to help give the economy a short-term boost while Obama is still in office. No doubts that the long-term impact will be negative.

[ozzymandus]

Back then there was a gas station on every corner, and they fought for customers. I remember making(begging) my Dad fill up at a station he didn’t usually patronize so I could get a free yo-yo. The station he usually used gave away glassware.

Most people’s entire knowledge of the oil business is how much a tank of gas costs, which is understandable, but results in Bill O’Reilly type ignorance.

[familyop]

Don’t worry. It’s the latest Ponzi scheme brought to us by the bankers. It’ll work this time.

Oil will be $10 per barrel for decades to come.

;-D

[Little maniacal irony and humor there.]

[blam]

"At which point my two twenty-something YO children will sheepishly say, "you were right, Dad, I should've put some money into energy funds as you suggested." lol "

My 47 year old son told me he lost $100K in oil last year but made it all back plus on Google stock.

[Teacher317]

2009? Oh, so long ago! We didn’t survive it then and we surely cannot survive it now!