A resource for debunking the investments myths peddled by the financial press and Wall Street hype and presenting rational,sensible investing approaches based on sound research and academic findings.
This blog is maintained by Lawrence Weinman MBA an independent Registered Investment Advisor www.lweinmanadvisor1.com
So what’s going to happen next? Here’s a sampling of predictions from the last two weeks:
Oil will probably continue to decline to as low as $30 a barrel, said Gary Cohn, president of Goldman Sachs Group Inc. “We’re probably in the lower, longer view,” said Cohn, a former oil trader.
Oil has the potential to reach $200 per barrel from a lack of investment in new supply, warned OPEC’s Secretary General Abdell El-Badri. “If you don’t invest in oil and gas, you will see more than $200,” he said, without giving a time frame.
“We are establishing a bottom,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.4 billion. “In the long run, probably $60 is going to be your pivot point.”
“The fundamental supply and demand does remind me of 1986 a bit, where we could go into a period in this decade of lower oil prices,” said BP CEO Bob Dudley. Prices may stay below $60 for as long as three years, he said. “It will be a long time before we see $100 again.”
Oil could fall to the $30 a barrel range, said Fumiya Kokubu, CEO of Tokyo-based Marubeni Corp. He said he doesn’t see much of a price rebound in the next two or three years.