Charts Predict: Oil Heading towards $17
16 Jan 2009
The price of a barrel of oil could slump toward $25 and even lower as the economy continues to falter, Phil Roberts, technical analyst from Barclays Capital, told CNBC Friday.
“We're still getting bearish signals, the implication is - this move's not over,” Roberts said.
Roberts' near-term view for the oil price is $29, but his “slightly longer-term” outlook is for $25 a barrel or lower.
“In the first quarter of 2009, you're in to the final phase of the down leg in the business cycle. So what we’re looking for is this to slow, the downtrend to slow. Where it's going to stop – best guess would be maybe between $17 and $25 a barrel,” he said.
Roberts said he would even be wary of buying at $17 a barrel.
“The downside risks are still very much there and this trend, you've got to respect it,” he said. “The deflationary cycle is still in play,” he added.