Royal Bank of Scotland (RBS) have advised the investors to ‘sell everything’ during the warnings that the oil prices can decrease to the lowest level in 17 years which may ignite a severe set back, seemingly as severe as the financial crisis of year 2008.
The bank reported that the investors stock markets could even fall 20 per cent in 2016 as it asked them to sell, saying: ‘In a crowded hall, exit doors are small. Risks are high’.
The alert surfaced as the oil prices descended to $ 30 a barrel for the first time since year 2004 – however, Standard Chartered said that it might yet fall to as low as $ 10 per barrel, a situation which has not faced since 1998.
The Analysts have also warned of a ‘cataclysmic year’ for investors and the global economy, BP says that it would have to reduce almost 4,000 posts around the world which may also include 600 in the North Sea. It would be an overwhelming blow for North Sea oil industry which is already distracted from the decline in prices in the past 18 months that has led the pump prices to fall by almost a pound per liter. The terrible alerts follow a blazing beginning of the year regarding financial markets with billions of pounds relieved from stocks in UK and elsewhere.
The article was originally posted on Dailymail.co.uk.