CNBC’s Cramer Says Oil Hit by Perfect Storm

“Sixty dollars is, I think, extreme. I think the $70, the $75 is possible,” he said.

If oil does drop to $70, Cramer does expect a “concerted slowdown” in production.

On Tuesday, U.S. crude oil saw its biggest one-day selloff in almost two years. Prices hit a 27-month low on Wednesday

The oil market has seen a jump in supply as countries including Iran, Saudi Arabia, U.S. and Libya pump out oil and supply exceeds demand.

“This is uniquely a perfect storm against oil,” he said.

Cramer also said investors underestimate Ebola, which has sparked a worldwide effort to contain the deadly disease.

“We underestimate Russia,” he added. “We underestimate ISIL. We underestimate the decline in commodities. We underestimate the decline in the Chinese growth. We underestimate Germany’s resolve to be able to stay balanced budget in a Herbert Hoover way.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza