With crude oil at lows not seen in over a decade and prices at the meter beginning to reflect this, many have been asking themselves how long the low fuel prices will last.
One person who is optimistic is British billionaire and founder of the Virgin Group Richard Branson. Branson himself owns an airline and stands to gain much from low fuel prices, so he should know what he is talking about.
“Low fuel prices are here for a long time to come”, Branson said in an interview with Bloomberg, citing oversupply and Iran re-entering the global oil market as reasons for his prediction.
With crude trading at 13-year lows and Iran claiming it can produce another 500,000 barrels per day, potentially moving up to 3-4 million in time, it seems that an oil-bottom hasn’t been reached yet.
When asked why fuel prices at the meter haven’t reflected this drop quite yet, Branson answered that it would happen soon, and come very quickly when it does.
The business magnate also predicts that low oil prices won’t just have a positive impact on his companies, but on the larger economy as a whole, and that the markets are largely over-reacting currently.
What’s your opinion? Are you enjoying savings at the pump? Do you think low fuel prices are here to stay? Is the current sell-off an over reaction?