Friday, January 23, 2015

Alwaleed: No more $100 oil

Kinda seems like Boone Pickens' famous, "You'll never see natural gas with a $2 handle again in my lifetime."

Well, Boone's still kicking and, what...we've seen a $2 handle on gas a couple of times now?

Alwaleed may be right, but I've been around markets long enough to know that when making predictions, never say never.


Malmo's Ghost said...

I can see no more $100 oil in the next few years, but if global growth kicks in and the austerity meme takes a breather in Europe and the US, no way will it stay below $100. I would agree, however, that protracted levels above $100 would be difficult in a deflationary environment or even in a growth environment. $100 oil seems to stop expansion in its tracks.

Matt Franko said...

Is this Alaweed the guy taking over for the dead guy?

Malmo's Ghost said...

The strong dollar is another bulwark against even $60 oil. Oil priced in euros is a bitch no doubt.

Ignacio said...

"Oil priced in euros is a bitch no doubt."

Yeah, that's an other one I forgot to mention in the other thread! Strong dollar + cheap oil is good for USA citizens, but the € falling against the dollar cuts a lot of the stimulative effects regarding raw materials and energy imports the eurozone does (though the ruble is a complete disaster too so it may be a net gain for the eurozone).

Peter Pan said...

Where is the link to this silly prediction?