Thursday December 11, 2014

// December 11th, 2014 // Daily News

$60 oil will be norm for next 5 years: Economist

Oil prices will stay around $60 a barrel for the next five years as China’s economy cools down, economist Andy Xie told CNBC on Thursday.
Oil prices had risen so high because of China’s boom, the former Morgan Stanley and IMF senior economist said in a “Squawk Box” interview. China is now transitioning from a 15-year super cycle that built up a massive industrial machine, and the economy must cool down to digest overinvestment, which will drag down commodity prices, he said.
“When China goes into normal situation, I think that the oil price will become normal, too, so $60 would be the normal price for the next five years or so,” he said.
Xie predicted the oil price plunge to $60 in September as China’s energy demand tapered off. He said oil price declines are trailing the slide in coal, but he expects the gap to narrow.
“Coal is down 60 percent, so eventually I expect oil to come down 60 percent, too,” he said.
The price of U.S. crude oil has fallen about 43 percent from its high of $107.73 in June.
Over the next four to five years, China will experience deflation and sluggish demand, Xie said. Consumption will remain healthy, he added, with households continuing to spend and exports performing well.
As a result, Xie sees the China story hitting raw material and equipment providers such as Australia, Japan and Germany, while consumer products providers like France and Switzerland will feel much less impact.
The low-oil price market will also be a boon to the United States economy, with each sustainable $10 drop in the cost of crude adding two- to three-tenths of a percentage point to GDP, said Jeremy Zirin, chief equity strategist for Americas at UBS Wealth Management Research.

Today’s Inspiration

Start Something

by Joyce Meyer – posted December 11, 2014

[Let your] love be sincere (a real thing); hate what is evil [loathe all ungodliness, turn in horror from wickedness], but hold fast to that which is good. Love one another with brotherly affection [as members of one family], giving precedence and showing honor to one another. Never lag in zeal and in earnest endeavor; be aglow and burning with the Spirit, serving the Lord.
—Romans 12:9–11

If all of us started having a godly attitude, it would catch hold and spread like a vi¬rus. Wouldn’t it be great if we could spread a good virus?

Imagine the whispers: “Have you heard? There’s something wonderful going around. Have you caught it? It is running rampant all over the place. Every¬where you look, people have a new attitude!”

Let’s start something today! Let’s decide to think like Christ. Let’s decide to love everyone we meet today, and pass the word so that everybody catches on to it.

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