Watch out, US crude prices could correct 35%: Analyst
cnbc.com
... David Lennox, resource analyst at Australian trading firm Fat Prophets, said the price of WTI is set to correct by as much as 35 percent from current levels by the end of the year as investors realize that U.S. demand levels are not as strong as originally thought.
"The WTI price should be south of where it is now," he said. "We think it should be around $70 to $95, so we are in line for a reasonable correction by the end of the year if demand continues to be muted..."
... "We will see a very sharp and rapid movement [correction], and we will be going short as we think WTI is overvalued at these levels... we could see moves of 5-10 percent, [in the short-term,]" said Andrew Su, chief executive officer at Compass Global Markets.
Su said the correction was likely to extend further out, with WTI prices likely to fall almost 16 percent to about $90 per barrel in the fourth quarter, and almost 30 percent in total over the next 12 months to $75 per barrel.
"This move will coincide with a sharp correction in the U.S. equity markets that will be likely within the next month and precipitated by data out of China that indicates a greater than expected slowing of the economy there," he added... |
