OIL GIANT: Crude Could Crash To $30
Myles Udland
BusinessInsider.com
Nov. 30, 2014
More than 50% lower.
That is how far Canadian billionaire Murray Edwards, chairman of Canadian Natural Resource, thinks oil prices can fall from here.
Speaking with Canadian business publication Financial Post, Edwards said, “Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time.”
Edwards told Financial Post’s Claudia Cattaneo that, “On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit,” adding that if oil falls to $30 or $40 a barrel he doesn’t expect it would stay that low.
“The better question is where does it stabilize, and that $70-$75 area is probably not a bad place to stabilize for a period of time until you get more balance in term of growth in demand and some supply response,” Edwards said.
On Friday, West Texas Intermediate crude prices settled at around $66 a barrel, about $8 a barrel below where they started the week, as Thursday’s announcement from OPEC that it would not move to cut production sent prices tumbling.
The Rest…HERE
