Wednesday, 13 June 2012

Oil Price Could Plunge to $50, Says Credit Suisse

THE DAILY TELEGRAPH: The oil price could almost halve later this year if the crisis in the eurozone escalates, Credit Suisse believes.

“Brent oil prices would again hit $50 (£32) a barrel” in a worst-case scenario, according to analysts Jan Stuart and Stefan Revielle. “Oil demand would deflate sharply following acute crises of confidence.”

The analysts said that all potential negative scenarios involved Europe “to some degree” with the starting point of collapse coming over the summer. However, Brent crude rose $1.06 to $98.20 yesterday after the US Energy Department said the country’s stockpiles had seen a surprise fall of 191,000 barrels to 384.4m barrels last week.

Comparing the situation in 2008 and today, Mr Stuart and Mr Revielle noted that “global imbalances are worse and much of the available political and real capital has merely been squandered in the interim.” » | Garry White | Wednesday, June 13, 2012