Guinness: Oil won't rebound until it hits $40 a barrel

Guinness Asset Management chief executive Tim Guinness believes the price of Brent crude oil will fall to as low as $40 a barrel - and then rebound sharply.

Oil prices have been tumbling in recent months, from its high of above $110 at the start of July, and a further leg down began last month when OPEC refused to cut production. The plummeting price - a barrel of Brent currently trades at $59 - has hit oil majors' share prices and precipated a currency crisis in Russia, but also been touted as a major stimulus for US consumers. Guinness (pictured) puts the fall down to a desire by Saudi Arabia to install capital discipline in US shale producers, thereby improving its own competitive position. "US drillers are incorrigibly indiscipline...