Commodities will halve in price in the next five years and oil could fall to $60 a barrel in that time, according to BDT Invest founder Henry Thornton.
Thornton, manager of the firm’s Asia fund, said over the next six months the oil price could spike to $200 but the higher it gets the lower it will fall.
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He said in developed regions oil is being charged at $130 a barrel but consumers in countries such as China, India and Indonesia where there is the fastest demand, consumers are paying the marginal cost of production, $60 a barrel.
“At some point in the emerging markets this will come up to the world price and the demand will fall over on its back. The price will retreat and settle at the marginal cost of production around $60. In the next six months it is likely to hit $200 but the more it goes, the harder and faster it will fall.”
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