GO
Loading...

Charts Predict: Oil Will Be Trading Wasteland for 5 Years

CNBC.com
Monday, 8 Dec 2008 | 5:02 AM ET

The price of oil could stay in a tight range below $50 a barrel for the next five years, after retesting recent lows, Paul Day, deputy head of research from MIG Investments, told CNBC.

Oil to Stay Range Bound: Charts
Oil prices could remain range bound for years to come, Paul Day from MIG Investments told CNBC Friday. Day also takes a technical look at the dollar / yen and the S&P 500.

"We expect oil to probably trade in a range between $36 to $47, possibly for five years," Day said.

New York light, sweet crude could fall to $36.78 by May 2009, before going "through quite a protracted time like in the early 90s where we didn't really do much," according to Day.

"We will be stuck in a range for a lot longer than people think and it won't be the big story anymore," he added.

(Watch the full Paul Day interview above).

Robin Griffiths, technical strategist from Cazenove Capital, agreed with the relatively weak and steady outlook for oil. (Watch the full Robin Griffiths interview here >>>).

"The price of oil is going to average, going forward from here, a lot lower than people had factored in only a few months ago," Griffiths said.

The typical pattern for bear markets also suggests that oil could rally a quarter to a half of the value of its recent fall, followed by a further fall, he added.

Last week Merrill Lynch predicted the commodity's price could sink to just $25 a barrel next year.

Clive Lambert from FuturesTechs told CNBC that that is "more than possible." (Watch the full Clive Lambert interview here >>>).

For the Investor:

Pros Say: Prepare for Depression & Deflation
Market Tips: Catch This Multi-Month Rally
Options Action: A Hot Insurer Stock!

Featured

  • Pro-Russian activists seized the main administration building in the eastern Ukrainian city of Donetsk.

    Deadly clashes in eastern Ukraine have spiked fears of all-out war in the region. So who are the armed, flag-waving rebels who appear to be behind it all?

  • An employee wipes a TV screen in a shop in Moscow, on April 17, 2014, during the broadcast of President Vladimir Putin's televised question and answer session with the nation.

    Russian President Vladimir Putin warned of possible disruption to Europe's gas supply on Thursday, as the U.S. confirmed it would send additional military support to Ukraine.

  • The recovery in the EU's car industry carried on through March, providing some much needed cheer for automakers.

  • Amazon is facing fresh strikes in Germany after pay negotiations with the country's second-largest union Ver.di broke down, the Financial Times reports.

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.