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Oppenheimer & Co.’s Fadel Gheit argues that high oil prices are not sustainable and could drop as much as $20 in the next six months.
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Very much so we have this unbelievable seesaw day for oil crude plunging on that report.
And then of course recovering to end the session here we go what about a 10550.
-- -- -- as one of 530 at the moment but.
The White House did officially denied the agreement.
More than -- today and in the future we're joined by profligate he is a managing director and senior analyst.
At Oppenheimer and company and the man to whom we always turn for the last word on the price of -- that you think the price of oil is a bubble about to burst wide funnel.
Well because oil prices are not supportive -- market fundamentals.
They probably obvious to -- it could Meredith and -- suppliers plentiful.
So I don't see any justification for oil price so what is your -- at -- log -- to -- -- -- and twenty about.
I'm -- your information WTI -- -- and into the global market.
The global market for crude spreads this if you breath and -- about 22 dollars for Britain should go back to -- to five.
And got the -- I should go about the safety.
Without that -- a long way from 85 at 123 right now for -- and and I suppose we could say that.
While all -- to say is correct and every single point is right on the money that supply is up.
And demand is down and drilling seems to be up in certain parts of the world.
And yet you have this fear trade -- calling the reality -- Worse still 185 for -- what would make it drop that dramatically.
Well it's a bubble would.
We've been -- bubble before -- -- forty years ago but people do not learn.
We've seen bubbles over the last that you have a bubble was burst the question of look at this -- and by how much.
When -- forty years ago everybody -- oppressive horrible for 14 of the 200.
And guess what those three months after picking up -- -- -- it went down to about 35 dollar saw huge what is the correct sharp.
Goes into the opposite direction it is very -- sharp -- so if oil prices by twenty -- from -- I guarantee they're gonna put down by.
Fourteen dollar after that -- Because that this is not sustainable if -- -- total vehicle remarks we've been here but at the end of the day you can fool some of the people some of the -- but look all the people all the time.
Bottle I don't wanna get Bill -- any more ammunition because of course he sees a whole world is a conspiracy but the speculators.
Our target of his oil speculators and you tend to agree with -- do you think that there.
That -- are playing a big role in this in what way specifically.
Our oil prices right now being manipulated.
For very simple reason I don't even have to look at data you know it's it needs.
-- if you will.
All I have to say is that what for the marginal cost of production of the much of -- -- -- and about seventy to 75 -- so it's a commodity.
Nobody has his medium what brand on -- so -- Robinson should blood and sustainable.
I'll -- significantly above the -- film production ramp up production to get the most expensive oil comes from Canada.
And this money at 75 dollar so why would you -- about under the 22 dollars or speculation.
You -- that that term speculator very shadow wheat what are they are they just high frequency traders are working off algorithms or are they people who run hedge funds and say -- -- make a buck on a quick right.
Hedge funds hedge -- doing anything illegal.
They -- this is me.
Fast and the fire they -- Captured by the ban bought I don't that they keep pushed out should there be some by regulation or does not free market work -- and look -- -- puts it -- limit.
Rob just figured that you carve out -- -- what future than your accounts which which didn't happen over and over again at what you don't put you'll find this a bit they should.
Did it presenting legitimate businesses additional -- at -- be allowed.
The truth -- did get Exxon or do you feel shelves or and I American Airlines.
This people have nothing that you don't -- always be don't settle it all -- -- is still very addictive and it's related to get oil prices up or down.
-- don't be surprised if tonight.
Part of that interview was excerpted on the Reilly factor don't be at all surprised if you see yourself twice on a fox product thank you for being here -- -- good to -- thank you.
