OPEC ‘effectively dissolved’; oil will slide to $50 - Bank of America — RT Business

OPEC ‘effectively dissolved’; oil will slide to $50 - Bank of America — RT Business:



"OPEC has lost its competence, as it failed to stabilize oil prices at the last meeting, according to Bank of America. It warns oil will slide to $50 a barrel leading to wild prices, where only rich Middle East states like Saudi Arabia will benefit.



Countries that don’t possess vast reserves, such as Venezuela and Nigeria, will struggle to survive; The Telegraph quotes Francisco Blanch, Bank of America’s Head of Commodity Research.



The crucial changes in the global energy industry are also caused by the development of liquefied natural gas (LNG). Years of oversupply will bring down oil prices allowing Europe to look for cheaper sources of gas."



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