A ‘Perfect Storm’ Could Cause A Collapse In Oil Prices That Hits The Stock Market

Sunday, August 4, 2013
By Paul Martin

AUG. 3, 2013

Deutsche Bank strategists Rocky Fishman, Salil Aggarwal, and Lon Parisi are out with a note warning clients that a “perfect storm” of structural, demand, and supply-driven factors could conspire to cause a “major pullback” in oil prices, with the potential to derail the rally in the U.S. stock market as well.

“A major pullback in oil prices could have a concentrated effect on the S&P energy and industrials sectors, with perhaps further sentiment knock-on effects,” write the strategists. “After WTI’s brief pullback from its peak last month, it may be time to at least consider this possibility.”

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