The meltdown in the oil market is not over yet.
That’s the message from Jeffrey Gundlach, the star bond investor who predicts oil will plunge another $10 (it’s $80 a barrel now).
While another decline in oil prices would bring smiles to American consumers — think around $2.70 a gallon at the pump as a national average — it could spell trouble for the boom in shale projects boosting the U.S. economy.
“I think it’s going to $70 and if it does, it’s bye, bye fracking. Goodbye all of the great job creation from fracking because fracking becomes too expensive if you can buy oil at $70 a barrel,” Gundlach said on Wednesday at ETF.com’s Inside Fixed Income Conference.
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