$30 oil? ‘Forget it,’ says this money manager
Despite continued weakness in the global stock markets, energy prices are close to a bottom, says Peter Breiger, Chairman and Managing Director of Globe-Invest Capital Management.
“You hear comments about $30 oil, forget it,” he tells BNN. “It’s simply not going to happen. I think it may spike down to $35, but $40 is certainly a long-term base.”
But while Breiger does not see global oil prices dropping much lower, he says low energy prices are aren’t going away anytime soon. “We’re looking anywhere to $55-70 as being the price over the next several years.”
Energy stocks should also see limited downside since Canada’s energy names have already been discounted to account for the low oil prices, he says.
The global economy has yet to feel the full impact of low energy prices, says Breiger. Once it does, the lower costs will eventually help boost Canada’s energy sector, he says.
“You hear comments about $30 oil, forget it,” he tells BNN. “It’s simply not going to happen. I think it may spike down to $35, but $40 is certainly a long-term base.”
But while Breiger does not see global oil prices dropping much lower, he says low energy prices are aren’t going away anytime soon. “We’re looking anywhere to $55-70 as being the price over the next several years.”
Energy stocks should also see limited downside since Canada’s energy names have already been discounted to account for the low oil prices, he says.
The global economy has yet to feel the full impact of low energy prices, says Breiger. Once it does, the lower costs will eventually help boost Canada’s energy sector, he says.
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