I love how the world turns so quickly. We had $140 oil in July of last year and now this has happened.
Demand is expected to fall by 980,000 barrels per day in 2009 to 84.7 million, the agency said in its monthly market report. The IEA's forecast last month was for demand to contract by 500,000 barrels per day this year.
If the oil producing countries don't cut supply fast enough we may see some sub $20 oil in the future. That should be good for consumers but bad for the electric car industry, renewables, alternative energy, as well as drillers and oil service and exploration companies. It might be good for refiners depending on how gasoline consumption shakes out.
We might also get a collapse of Iran's government due to social unrest caused by massive unemployment. However, if the Mullahs start massacring kids in the streets of Tehran Obama better not sit there and act like nothing is happening like Bill Cinton did in Rawanda.
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