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