This is very reminiscent of Henry Blodget’s crazy faced call on Amazon, back in the dot com days. An analyst at Standard Chartered has gone full zerohedge and declared oil was completely fucked, without soles on its shows, heading for 10 bucks.
Standard Chartered said there would be no bottom in sight, until prices fall to $10 and “money managers in the market conceded that matters had gone too far”.
“Given that no fundamental relationship is currently driving the oil market towards any equilibrium, prices are being moved almost entirely by financial flows caused by fluctuations in other asset prices, including the dollar and equity markets,” said Standard Chartered.
I remember when crude last fell to $10; it ushered in the dot com bubble and people got rich as fuck. Truth be told, had you started to leg into oil stocks when it hit $10, slowly but surely, you made a fortune over the coming years. I did a study on this last year and learned that oil and tech were mirror opposites back then and the right play was to fade tech in 2000 in exchange for crude stocks.
If my memory is correct, oil stocks weren’t too popular and trading was thin, almost by appointment. No one knows where oil will bottom; but $10 seems a bit extreme, even for me.
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Ten dollars a barrel means Braved-flaps days for eternity, and beyond.
Sure. Crude hit 16 in 1998 and then you have to go back to 1948 to find it lower. $15 back then.
Seems very reasonable.
I only pay attention to Dennis Dartman.
That $10 prediction must be from an oil bull!
Oils ATH was 140 (10 yearsish ago) and all time low was zero (before civilization started). Seems like a good risk profile at current levels or lower.
oil will bottom in the low 20’s, we need and will see more blood in the streets,
Professor Fly has been “right on” the oil call, these debt loaded co’s need to go under, and low 20’s will do it, it’s going to get worse before it gets better, there will be blood (extra daniel day lewis), but there will be $$$$$ to be made
golf clap,…. hats off to Professor Fly
ps,…didn’t some moron from the peanut gallery state “back up the truck, and load up on oil”, a couple weeks back,..
who was that,…. haha ha aaaah ahaaaaaaa haaa (extra joker laugh)
The internal situation in Saudi, hard to fathom in normal times, is the key to the whole thing. If they blink, or have to spend valuable spa time repressing dissent, things will turn around very quickly.