Oil price may halve to $50 by Q3 - Credit Suisse

Brent crude oil prices could drop by almost 50% to $50 a barrel within the next three months if the eurozone crisis escalates, Credit Suisse has said.

The drop would be dependent on negative newsflow driven to a greater or lesser extent by events in Europe, analysts said, prompting a collapse in trading and global activity resulting in surplus oil supply. Brent crude is currently trading at a settlement price of $97.14 a barrel, having fallen to a 16-month low of under $97 earlier this month on renewed concerns over global growth. The European benchmark price has shed almost 25% since early March. The Credit Suisse note said the firm's worst case scenario would also see the WTI crude price fall to $40 a barrel, a price level close t...