At the moment, there are no shortage of forecasts to pick from as to how low it may eventually go. Goldman Sachs thinks Brent crude will fall to $42 in April-June; Morgan Stanley predicts a worst-case scenario of $43 per barrel in 2015 and even the once near-impossible scenario of $20 per barrel oil is now attracting attention from traders.
The one thing that most agree on, however, is that this will be a crucial few weeks for black gold. Here, we take a look at some of the difficulties in calling just how far oil prices will fall. In 2008, the last major period when oil fell at a similar rate, prices fell from $146 per barrel in July to $36 per barrel in December.
However, Neil Atkinson, head of analysis at Lloyd’s List Intelligence, pointed out to CNBC, that during this period global demand was falling 0.6 million barrels a day and the market was supported by falling supply from non-OPEC countries.