U.S. oil bounties are in a “ferocious” bear market, and crude could fall to as low as $40 per barrel, CNBC’s Jim Cramer verbalized Thursday.
“Oil is collapsing guys. It’s collapsing,” Cramer said on “Squawk on the Avenue.” Asked if prices could fall to $50 per barrel, Cramer utter, “I could make a case for the $40s here. I’m not kidding.”
The “Mad Money” emcee did not provide a timeline for his case.
Oil was lingering near multimonth lows on Thursday morning, with the American benchmark West Texas Intermediary crude dropping to around $61 per barrel.
Record U.S. crude producing and signals from Iraq, the United Arab Emiratesand Indonesia that crop will grow more quickly than expected in 2019 were albatross oil prices.
“Demand is slowing for oil and we’re pumping like mad,” Cramer said Thursday.
Oil require is still expected to rise next year, but forecasters now expect less athletic growth in global crude consumption due to economic concerns fueled by pursuit tensions and currency weakness in emerging markets.
Cramer said Monday that flushed outlooks from major oil companies Exxon Mobil, Chevron and BP do not evidence think about the economic reality. He said investors betting on those companies may be establishing a “bad call.”
That same day President