How Low Can Oil Prices Go?
Are oil prices headed lower? The price of crude has tumbled 28% since October, in the wake of a sudden drop in demand from ailing economies in the Far East, mild winters in the U.S. and Europe, and an ever-expanding supply. Not even the prospect of a meeting of oil ministers from the Organization of Petroleum Exporting Countries to discuss production on Jan. 26 or Iraq's continuing bellicose taunts have made a difference. On Jan. 21, oil futures sank to a 4-year low of $16.15 a barrel after the American Petroleum Institute reported that U.S. oil inventories ballooned by the largest weekly amount in a decade.
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