Tags: marc faber | oil | crude

Marc Faber: Get Ready for $70 Oil

By    |   Monday, 24 Oct 2016 10:15 PM

 

 

Marc Faber, the publisher of the Gloom, Boom & Doom report, predicts that oil will soon spike to $70 as Asia starts spending on its infrastructure and other developed nations begin to boost spending.


"The need for infrastructure in Asia is huge. They have to build roads. You go to Jakarta, Manila, the infrastructure is a catastrophe," he told CNBC. "You cannot ship that many people by airplanes. There's no space," he said.

"In the western world, they believe — I'm not saying it's the right belief — but the belief among economists and the neo-Keynesian and the interventionists is that monetary policy alone cannot lift the global economy out of its slow growth mode," he said. "So they have to go and build infrastructure and boost governments' fiscal deficits," he said.

"This combination of infrastructure in emerging economies and infrastructure spending in the developed economies of the U.S. and Europe, in my opinion, will mean that inflation will actually surprise on the upside," said Faber, a Swiss investor who is famous for making gloomy market forecasts.

Oil prices dipped early on Tuesday over disagreement within producer cartel OPEC on who should cut how much production in a planned coordinated reduction to prop up prices, Reuters reported.


International Brent crude oil futures were trading at $51.38 per barrel at 0117 GMT, down 8 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures were down 5 cents at $50.47 a barrel.

But as the bear market in oil approaches its two-year anniversary, a consensus is growing that stagnant growth worldwide and aggressive pumping by giant producers like Saudi Arabia will keep a lid on oil prices for some time, The New York Times recently reported.

 

Goldman Sachs foresees the price of oil, currently about $50, remaining flat through most of 2017. And the federal body that analyzes oil price movements, the United States Energy Information Administration, expects an average price of $52 next year.
 

(Newsmax wire services contributed to this report).


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Marc Faber, the publisher of the Gloom, Boom & Doom report, predicts that oil will soon spike to $70 as Asia starts spending on its infrastructure and other developed nations begin to boost spending.
marc faber, oil, crude
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2016-15-24
Monday, 24 Oct 2016 10:15 PM
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