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Why BMO’s CEO expects it to take two or three years for oil prices to stabilize

Bank of Montreal Chief Executive Officer William Downe said those expecting oil to recover from 12-year lows quickly are being realistic.

Oil prices won’t go back to more normal levels for two or 3 years, and people expecting a speedy rebound out of this month’s 12-year lows are being unrealistic, Bank of Montreal Ceo William Downe said.

“It’s unrealistic to believe it’s going to snap back,” Downe said in an interview Friday in Davos, Switzerland. “Prices will normalize after which begin to progress.”

World leaders and CEOs of some of the biggest companies have gathered now for that annual meeting of the World Economic Forum in Davos, where issues such as the global markets rout, China and plunging oil prices have dominated discussions. Oil prices have fallen by nearly a third previously Twelve months, as well as on Jan. 20 sunk below US$27 a barrel before rallying.

For a guide how the present oil rout will affect North America’s economy, one should look back 3 decades, said Downe, 63, who oversees Canada’s fourth-largest lender by assets.

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