From Pragmatic Capitalism:
Here’s a fairly alarming prediction heading into the seasonally strong winter months for oil prices.
Amrita Sen, commodities analyst at Barclays, was interviewed on CNBC recently to discuss the outlook for energy prices and to shed some light as to why oil prices have diverged from many other commodities and remained so firm in the face of severe global headwinds.
Sen says the likelihood of prices falling much below current levels is close to nil:
“It’s been the supply side. Libya went off the market. Lots of problems in the North Sea. Brazil, I mean, there were problems everywhere. Inventories are about are about 50 million below the seasonal average heading into the winter. There is no way prices can…