Oil prices could drop to $50 a barrel:
Oil prices could potentially fall to $50 a barrel in a worst-case scenario according to analysts Jan Stuart and Stefan Revielle, the Telegraph reports. ‘Oil demand would deflate sharply following acute crises of confidence,’ they say.
Potential negative scenarios involving the eurozone crisis could be the start of a collapse coming over the summer.
However, the report mentions that Brent crude rose $1.06 to $98.20 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.’
According to the Telegraph, these comments come ahead of an expected clash between the Organisation of the Petroleum Exporting Countries’ members at today’s key meeting in Vienna.
Read more: http://www.oilvoice.com/n/Oil_prices_could_drop_to_50_a_barrel/59f50afa4be5.aspx#ixzz1xqijAQHO