December 16, 2008

TD Bank economists predict $30 oil

CANADA/POLITICS - TD Bank economists predict the global economic slump will pull down oil prices faster than previously forecast, with crude oil now expected to fall to $30 US/barrel next year.

That would be barely one-fifth of the July peak of over $147 a barrel, and down from TD's forecast a month ago that oil would bottom out at $45 a barrel during 2009. TD is predicting a 60% decline in its index of commodity prices.

If oil prices do slip to $30 per barrel it would be similar to similar predictions that oil prices will reach $25/barrel in 2009 and that the Canadian petro-dollar will slide to 65 cents US.

TD also predicts oil prices will double to about $75 a barrel by the end of 2010 if the world economy revives.

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