Is Oil Due for Another Big Fall?


"While many analysts. . .expect oil demand to rebound sharply once the economy recovers, not everyone agrees that prices are necessarily going to soar at that point."

In recent weeks, as oil climbed above $40 a barrel, the conventional wisdom among specialists was that the price decline that began last summer was largely over. Amid production cuts by the OPEC cartel, oil had apparently found a floor that would last until the global economy rebounded.

But a growing chorus of analysts and economists is questioning that notion. They see troubling conditions in the oil market that could still push prices down sharply. Some are predicting that oil could fall to $20 a barrel and stay low for years.

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