Oil prices have fallen below $40 a barrel, a 4 year low, despite OPEC announcing that it would cut production by 2.2 million barrels a day.
Thursday afternoon saw crude oil trading below $36 a barrel, says Bloomberg. JP Morgan chase is warning that the possibility of $25 barrels of oil in the future is “hard to dismiss.”
JPMorgan Chase & Co., the largest U.S. bank by assets, reduced its 2009 average oil price forecast to $43 a barrel from $69 as a global economic slowdown causes a contraction in demand. The prospect of oil falling to $25 is “hard to dismiss amid a serious deterioration of economic conditions and building stocks,” the bank said in a report released yesterday.
Oil Falls Below $36 as Worsening Economy Increases OPEC Doubts [Bloomberg]
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