Drop in Oil Not Reflecting Economic Reality Says HAGIN's Morris

The severe drop oil prices reflects a global slowdown which runs counter to what recent economic data is suggesting, said Patrick Morris, CEO of HAGIN Investment Management. Morris added that the slump in oil also does not take America's trillion dollar trade deal with China into account. He says the downdraft in prices will not knock out shale wildcatters in the short term since many are hedged, but it could affect new production if it is prolonged. Finally, Morris said the oil majors are already feeling the pricing pinch and are pulling back their deep sea drilling.