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How $30 oil can bring down the global economy

Tuesday, 1 December 2015

Energy consultant Dr Fereidun Fesharaki expects oil prices to slide to $US35 a barrel by the June quarter of 2016, in contrast to consensus forecasts which point to a gradual recovery from this quarter.

He puts an “absolute floor” on prices in the high $US20s a barrel range, at which point onshore US and deep-water projects are expected to be running at a cash loss, noted analyst Baden Moore from CLSA, which is hosting briefings by Dr Fesharaki in Sydney this week.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.