Gary Shilling: Oil prices will fall to $ 10 a barrel

Economist and financial analyst, Gary Shilling believes that the trend of oil will remain bearish and the price will reach between $ 10-20 per barrel.

In general, the supply continues to increase, while demand declined, suggesting a new drop in the price of black gold,” he said.

Here’s what Schilling wrote, as analysis of the future of oil:

The production of crude oil in the US is expected to increase by 300,000 barrels a day next year from 9.1 million to 9.4 million barrels. Of course, the number of drilling falls, but these are the most inefficient platforms, unlike horizontal platforms grabnakat of fracking industry. Iraq also recently signed a deal with the Kurds, which means another 550,000 barrels a day will enter the market.

While supply increases, demand weakens. OPEC predicted oil demand to reach 14year low to 28.2 million barrels a day in 2017, which is 600,000 less than forecast a year ago. The cartel also lowered its forecast for 2015, according to them, the demand will be 29.12 million barrels per day.

All this suggests that oil prices will continue to fall and it is likely to reach $ 10-20 per barrel

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