The global markets may not be keen on low oil prices but Virgin Group Founder Sir Richard Branson likes them… a lot.
“I think the markets are (as they often do) overreacting. I think they’re forgetting the reason that oil is priced at such a low level is excess supply over demand -- and that’s a good thing,” he said during an interview with the FOX Business Network’s Maria Bartiromo.
Branson says the consumer, airlines and most businesses will benefit from $25 per barrel oil.
“The only people who are going to suffer from it are obviously oil producing nations and oil companies,” he noted.
And according to Branson, oil prices could stay low for quite a long time.
“I personally think that oil is to stay low for some years to come and then you’ve got the clean energy revolution that’s been agreed [upon] in Paris coming along. You could see a situation where oil never really goes above $40 for many, many, many, years to come if ever.”
He also discussed China’s impact on the markets.
“People over-talk about China. America and Europe do not rely that much on China and the fact that china has only grown 5 or 6 percent rather than 8 or 9 percent is honestly not such a big deal. I think the markets are overreacting to China having a slight slow up.”