Fall in crude prices a short-term event, say expert

Brent crude fell on Monday below USD 70 dollar to hit its lowest level in four years. This is the worst losing streak for crude since the 2008 global financial crisis.

Jamie Webster, director, IHS Energy believes the fall in crude prices is exactly like 1985-1986 where it took 24 years before moving to the same price level once the price started declining. “Saudi Arabia is hoping that this is going to be a short quick really hard, very painful event and then it’s going to come back in a year or two after having washed out some weaker players,” he added.

Jonathan Barratt of Ayers Alliance Securities expects WTI to fall to USD 40 per bbl if the current price war spirals out of control.

Billionaire and chairman of Canadian Natural Resource, Murray Edwards expects WTI to loose 50 percent from here on and hit USD 30 per bbl.