Many Expect $40 Oil

Crude oil fell another 1.5 percent on Thursday, settling at $48.48, the lowest level since March 31. And some traders say even lower prices are ahead.

“This market is headed to $40 before we go to $60 again,” said Bill Baruch, chief market strategist at Chicago-based iiTrader, citing reasons on both the supply and demand side of the equation.

In terms of demand, Baruch says the long-term picture looks bearish, with the International Energy Agency saying in a July report that global oil demand is set to slow in 2016.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.