Monday, October 19, 2009

Bloomberg TV This Afternoon

I appeared live on Bloomberg TV earlier today to discuss oil.
Oil may rise to $95 a barrel this year as demand for heating fuel kicks in and OPEC sticks to its output reductions...  "The oil market is in a glbal supply-driven price rally," said Morgan Downey...  "As we head toward the winter season, and so long as OPEC continue to hold oil off the market, the higher prices are likely." 
Opec, responsible for about 40 percent of global crude production, is due to meet on Dec. 22 in Luanda, Angola.  The December meeting  "may coincide with prices reaching the $85 to $95 price level, at which point they will increase production," Downey said.
Downey is the author of "Oil 101," a history of oil exploration and trading.  In March, when crude traded around $43 a barrel in New York, he correctly predicted that prices would rebound above $60 a barrel two months before it happened. (source: Blomberg, October 16, 2009)
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