Adam Longson, Morgan Stanley’s head of energy commodity research, notes that one factor could send oil prices “into the $20s.” Longson is not alone, as Morgan Stanley, Goldman Sachs, Citigroup and Bank of America Merrill Lynch have all made calls for $20 oil. What does it mean when the big banks – arguably the most dominate force in financial services – fall in line and make a similar call on oil? Something is afoot and the world’s most powerful financial force has a view on the world — and what they see is more nuanced than a supply glut or wavering demand….
Big Banks Predict $20 Oil — And Causation Is Nuanced
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.