Live on Bloomberg TV

00:00PLATFORM. THAT IS THE BLOOMBERG BUSINESS FLASH. FRANCINE: LARRY HATHAWAY IS STILL WITH US. WE WANT TO TALK COMMODITIES. OF COURSE A LOT OF THESE RAW MATERIAL STOCKS ARE DANCING BECAUSE OF WHAT WE THINK THE FED WILL OR WILL NOT DO. WE ARE TALKING TO THE NATURE AND -- NIGERIAN PRESIDENT , HOW MUCH DOES THIS HAVE TO DO WITH SELLER OF HIS ADMINISTRATION TO DIVERSIFY AWAY FROM OIL? >> THERE ARE TWO BASIC PROBLEMS. OIL PRICES DID COLLAPSE. THE STATE OF ALASKA IS MAKING TOUGH DECISIONS NOW. THE SECOND IS TRYING TO DIVERSIFY, TO YOUR QUESTION. THERE ARE VERY FEW EXAMPLES OF COMMODITY PRODUCERS WHOSE ECONOMIES ARE DOMINATED BY A SINGLE ECONOMY WHOSE ECONOMIES ARE ABLE TO DIVERSIFY. YES, NIGERIA COULD HAVE DONE MORE, SETTING UP A RAINY DAY FUND, TRYING TO FIND NEW GROWTH OPPORTUNITIES IN HIGHER ENDS OF PETROLEUM WOULD BE ANOTHER EXAMPLE OF TRYING TO ADVANCE THINGS. DIVERS INDICATION IS VERY TOUGH FOR OIL PRODUCERS FOR -- DIVERSIFICATION IS VERY TOUGH FOR OIL PRODUCERS FOR A WHOLE HOST OF REASONS. TOM: WITH THE CHALLENGES, AND ALL THE SUDDEN, GEOPOLITICAL RISKS, WHERE IS YOUR ASSESSMENT OF WHERE OIL COULD GO? IS $60 PER BARREL POSSIBLE? >> $60 PER BARREL IS NOT OUT OF THE QUESTION. IT IS HIGHLY PREDICTABLE GIVEN THE INVESTMENT THAT HAS HAPPENED OVER THE PAST YEAR AND A HALF. WHERE THERE IS ANY IMPAIRMENT IN THE WORLD, PRICES JUMP UP TO $60. IT CAN ALSO BE A TRYST IF THE DOLLAR CONTINUES TO STRENGTHEN. DEMAND COULD PUSH PRICES HIGHER IN THE NEAR TERM. I THINK $50 IS ABOUT RIGHT.

No schedule data available.

Why It's So Hard for Commodity Producers to Diversify

GAM Chief Economist Larry Hatheway discusses commodity producers, oil prices and his outlook for Nigeria. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

More From Bloomberg Surveillance
All episodes and clips