Veteran Energy Economist: Oil Headed For $20-25

Veteran energy economist Philip Verleger insists oil never should have gone much above $70 a barrel; that it did so only because of “a perfect storm” of U.S. policy mistakes, European economic developments and currency shifts; and that it could well end up back in the low $20s before the global economy gets back on its feet.

“I think it will go a good deal lower, particularly next spring [when oil markets are traditionally weakest],” Mr. Verleger said. “If this thing follows a natural cycle, I think we’ll see something as low as $20 to $25.”

~From yesterday’s Globe and Mail, Canada’s largest circulation national newspaper

MP: The last time oil was $20-25 per barrel (October 2003), gas was selling at about $1.25 per gallon.

Posted in Categories: Canada, Commodities, Contributor, Eurozone, External Research, USA.

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