“The fundamental situation for oil markets is much worse than previously thought,” Barclays
1/12/16 – Oil plummeted below $30 a barrel on Tuesday for the first time since December 2003. The latest wave of selling leaves crude oil down 19% this year alone. It represents an incredible 72% plunge from crude oil’s June 2014 peak of almost $108.
Crude oil declined 3% on the day to settle at $30.44 a barrel, marking its seventh day in a row of losses.
Morgan Stanley warned this week that oil could touch $20 a barrel. RBS says if it falls below $30, then $16 is on the horizon.
The world is in a global recession, Andrew Roberts of RBS wrote. This terrible cocktail means investors should now be thinking about getting a “return of capital, not return on capital.”