Oil could fall as low as $20 a barrel in the first half of this year, says this week's cover story in Barron's. But as it recovers to $55 by year end, that could help drive stocks, which have closely followed oil prices, much higher.
"Here Comes $20 Oil" by Gene Epstein points out that an indicator that has been correct for the past two years suggests that oil prices soon will bottom at $20 a barrel. See why Barron's expects the price of oil will recover to $55 late in the year and probably will bring a recovery in equities along with it.
Says one analyst quoted in the article, "We think that the world is poised to lose a lot of oil production in the U.S., Colombia, Mexico, Venezuela, China, and then potentially in Russia, Brazil, and the United Kingdom sector of the North Sea," a precursor to the return of the bull market in the second half.
Among the questions addressed in the article are the following:Read more by clicking here.
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