Oil has probably bottomed out at $40, Greenspan suggests

By Rich Miller on 8/4/2016

WASHINGTON, D.C. (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan suggested that oil prices have probably bottomed out at about $40/bbl after tumbling more than 20% in the past two months into a bear market.

“It’s hard for me to imagine it going very much lower, but it could,” he said Wednesday, according to the transcript of a conference call organized by Rock Creek Group, an investment advisory firm in Washington.

Greenspan sees oil trading in a range of about $40 to $50 over the next couple of years. A $50 price would be high enough to encourage new shale oil production in the U.S., he said.

Oil futures traded near $42/bbl in New York on Thursday, down from a 2016 closing high of $51.23 on June 8.

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