Former global macro fund manager Raoul Pal, the author of the Global Macro Investor newsletter and founder of Real Vision Television, thinks it’s possible that oil prices could fall to $US30 per barrel if the dollar rallies.
“I look at probabilities,” Pal told CNBC’s Melissa Lee on “Fast Money” on Tuesday evening.
“The probability of a dollar break out is very big. So, if that happens, then the chances of the dollar moving much more rapidly than we’ve seen for many, many years, and that would lead oil to go much further. So, if that happens, prices in oil could go down to $US30, $US40 easily if the dollar moves in the way that I’m thinking it possibly will.”