Wide Ranging Predictions for Oil

The outlook on oil prices is clear: Oil will crash. Unless prices surge. Definitely one or the other.

Crude just had the biggest two-week gain in 17 years, but it’s still about 50 percent cheaper than it was in June. The situation is volatile, and forecasts are all over the place — from $30 a barrel predicted by the president of Goldman Sachs to as high as $200 a barrel seen by the head of OPEC.

So what’s going to happen next? Here’s a sampling of predictions from the last two weeks: Oil could fall as low as $30 because supply surpluses won’t disappear overnight, said Barclays analyst Miswin Mahesh; and Oil has the potential climb to $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.

Bloomberg

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