Wikinvest Wire

Schork: Oil could go below $50 a barrel

Tuesday, November 11, 2008

On a day when WTI crude oil closed below $60 a barrel for the first time in 20 months, analyst Steven Schork was on Bloomberg Television talking about energy prices.

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Schork noted:
The market works on emotions and fundamentals and both are still pointing to lower prices. We do know that we are in a recession and demand has pulled back greatly.
We did break the $60 psychological barrier today in New York. We certainly can break the $50 mark. We can see oil down in the $40 range before it is all said and done.
In January of 2007, crude oil dipped as low as $52 a barrel at a time when the economic outlook was much, much different. Given the recent momentum, don't be surprised if Steve Forbes' call for $35 oil is eventually proved correct, albeit, only temporarily.

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Anthony J. Alfidi said...

None of these oil commentators should ever be taken seriously. Earlier this year Goldman Sachs was predicting oil at $200+ by now.

Commodity price movements are completely random.

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