Investec predicts an oil price floor at $110

Global Energy managers expecting demand destruction in the near term but long-term fundamentals remain robust

Investec's Global Energy managers believe the oil price could fall to $110 a barrel but this level will serve as a long-term floor. Jonathan Waghorn and Mark Lacey said near-term demand destruction is having an effect on the oil price but this was fully expected. "We do not consider this price reaction surprising since we have a long-held view that global demand for crude oil would be negatively impacted if prices reached $135 a barrel," they said. The pair also believe corrections are an inevitable part of the longer-term up cycle in energy prices and said crude has corrected 20% on ...