Projections of oil reaching $200 a barrel did not seem outlandish earlier this year, as crude was hitting all time highs.
But with the fall last Friday (October 24) to $66.20 a barrel, the outlook for oil bulls looks bleak. The West Texas Intermediate futures contract was at $100 a barrel only a month ago.
Fear of a global economic slowdown is the main factor causing oil to slump. Whether this lull in demand will be sustained is not clear and will depend on how the variables that govern the oil market evolve.
The cyclical downward economic pressure has spread to...