Charlie Aitken, Bell Potter: A sharp drop in global oil prices is likely to occur as US oil storage inventories are at 80-year highs while the cost of...

Charlie Aitken, Bell Potter: A sharp drop in global oil prices is likely to occur as US oil storage inventories are at 80-year highs while the cost of financing oil carry trades is rising with US bond yields. Considering the slowing Chinese economy, cheap gas alternatives, high investment in physical oil and a resurgent USD, there is a clear likelihood that the oil price correction could get disorderly. A fall in the oil price is positive news for consumers, transport companies and inflation while oil producers and oil service companies are likely to suffer.