$10 Oil – How Far Could Oil Prices Fall If We See A 2009 Style Crash?

While predictions about volatile oil prices abound, one theme keeps popping up: geopolitical risk premium. First it was theories about a closure at the Strait of Hormuz. Then it was fears of an all-out war between Iran and the United States or Iran and Saudi Arabia. All those are merely possibilities, but the reality suggests that a whole different kind of extreme is far more likely: crushingly low oil prices. In amongst the screams of geopolitical risk premium are far scarier whispers of words such as demand destruction, trade disputes, and economic…