‘Oil price could slide to $30’ amid wider commodities slump

Commodities including oil and copper are at risk of steep declines as recent advances aren’t fully grounded in improved fundamentals, according to Barclays, which yesterday warned that prices may tumble as investors rush for the exits.

Copper may slump to the low $4,000s a metric ton, from $4,945 in London last week, while oil could fall back to the low $30s a barrel, analyst Kevin Norrish said in a note.

The risk for raw materials is that investors seek to liquidate bets on gains quickly and in unison, with potentially highly-negative consequences, Mr Norrish wrote in the note entitled “Buffalo Jump,” a term that describes a cliff where Native Americans herded bison to their death.