Oil prices were steady Tuesday, following a 7 percent rally the previous day, on further economic fears as Japan slipped into a deeper recession. GDP data showed the country's economy contracted at an even faster pace than originally estimated during the third quarter. CNBC's experts weigh in on the economic woes.
Return of the Commodity Supercycle?
Mark Matthews, chief Asia strategist at Merrill Lynch believes that commodity prices will not continue to tank as he thinks they have overshot to the downside. But it will not be the return of the commodity super-cycle, he tells CNBC.
OPEC May Slash Output by 3 Million Barrels
OPEC may cut oil output by as much as 3 million barrels a day, says John Licata, chief investment strategist at Blue Phoenix, ahead of the oil cartel's meeting on December 17.
Strong Consolidation from Oil Industry Coming?
2009 is going to be the year of M&A for the oil industry, according to Neil McMahon, senior research analyst at Sanford Bernstein.
A supercycle is possible, but not in the near term. McMahon sees oil regaining an upward momentum towards the end of 2009/beginning of 2010.
Integrated oil companies have outperformed the market both in Europe and the U.S. "quite significantly", especially Exxon Mobil and BP, McMahon told CNBC.
Worst Recession Since the 1970s