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Pros Say: Oil to Slip to $30

CNBC.com
Thursday, 8 Jan 2009 | 6:21 AM ET

Oil was steady Thursday after a surprising increase in inventories unleashed a brutal 12 percent selloff on Wednesday. Despite OPEC's massive supply cuts to help boost the price, experts tell CNBC the commodity’s price is likely to fall further.

Oil Prices May Hit $30

Shailaja Nair, managing editor at Platts foresees oil falling to $30, before any chance of price increases. She discusses the supply and demand issues affecting the oil market.

Oil Prices Could Fall Further

In the near-term, David Moore, commodity strategist at Commonwealth Bank of Australia sees further downside risks to oil prices.

Slippery Slope of Oil Prices

The technicals point to a very bearish outlook for oil, says Aaron Smith, managing director at Superfund Financial. According to the charts, he sees no support under oil prices.

Oil at $50-$80 is Reasonable

Oil prices at $50 to $80 a barrel would be a reasonable price for encourage upstream project investments, without killing off demand, says Victor Shum, senior principal at Purvin & Gertz.

Get Ready for the Bull Market

“We believe we’re going to see a rally, especially in the most heavily beaten down assets, which are industrial metals, energy-related holdings, as well as agriculture and some of the emerging markets which are now trading at extremely cheap valuations,” Puru Saxena, chief executive of Puru Saxena Wealth Management

“Our advice to clients is to buy the weakness. We believe that we may be entering into a new, cyclical bull market thanks to the money printing,” Saxena said.

Short-Lived Reprieve for the Greenback

The dollar may weaken beyond current levels, despite a promising start to 2009, predicts Magnus Prim, chief strategist Asia, trading strategy at SEB Merchant Banking.

Dollar-Yen May Plunge to 85

Within the next 3-6 months, the dollar-yen may plunge to 85, forecasts Masafumi Yamaoto, head of FX strategy, Japan at the Royal Bank of Scotland.

Upbeat on the Dollar

Jan Lambregts, head of research, Asia at Rabobank International thinks the dollar will do reasonably well in the year ahead. He also predicts how it may fare against the other major currencies.

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