Courtesy of Mish.
With the slowdown in China, and global slowdown in general, inquiring minds may be wondering “where is the price of oil headed?”
No one can answer that question with certainty, but Saxo Bank has an opinion worth considering.
Via email Steen Jakobsen, chief economist of Saxo Bank explains …
It’s not my role to run Saxo’s official view on Crude. That job I leave to my expert Ole S. Hansen, who by the way is doing an excellent job.
This is how we see the rest of 2014 using our data:
Oil in US Dollars
This is “brave” call but when you consider the speculative size of the market – you get the “potential” on the downside.
Massive Speculative Positions
It’s the Economy Stupid
- Asia is driving global growth down led by China – due to the desperate need for rebalancing away from topline growth
- Q1 and Q2 will be disappointing on growth. No, it’s not the weather – it’s the economy stupid! – this will drive demand down.
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