Oil Prices Could Hit $10 a Barrel, But Won’t Stay There

Oil prices keep sliding and the closely watched commodity could fall another 68 percent to $10 a barrel. ‘I’m not sure oil prices have reached a bottom,’ said David Lebovitz, global markets strategist at J.P. Morgan Asset Management, based in New York. ‘Oil could fall to $10 a barrel, but I don’t think it would stay there. I think somewhere around $30 a barrel is probably a fair place to look for stabilization in the oil complex.' Lebovitz said stabilization is what’s needed to move stocks higher. He said oil prices are flirting with 12-year lows amid concerns over weaker demand stemming from China and on the supply side with too much oil being produced. ‘I think the Chinese are sending the wrong signal,’ he said. ‘They’ve been doing these tiny devaluations at the periphery when in reality one big devaluation would send a signal that they’re committed to getting growth back on track. I actually think they’ve created a negative feedback loop and what they’ve been doing over the last few weeks may be a little bit counter-productive.' TheStreet's Scott Gamm has details from Wall Street.