It’s getting bloody out there. Just two days ago we told you the “unthinkable” may happen, that oil may approach or hit $20/barrel (see Oil Heading for $20/Barrel; Price in Freefall; Uncharted Territory?). Yesterday (one day later) the price for West Texas Intermediate (WTI) crude closed at $20.37. However, the price in the Permian traded as low as $16.24, the weakest level since 1999. That’s less than the price of a steak at the Outback Steakhouse! As for natural gas, the NYMEX futures price closed yesterday at $1.60/Mcf, but not before briefly hitting $1.55/Mcf. Some analysts now say the price of oil could hit (gulp) $0/barrel. Is such a thing really possible?
