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Oil to go under $25? Merrill Lynch says it could

Submitted by Frank Lara Jr on Fri, 12/05/2008 - 14:14.
in
Oil- Black Gold

Cheaper crude is here to stay and Merrill Lynch says oil may go below $25 in 2009 if the global recession spills into China.

Chart for UltraShort Oil & Gas ProShares (DUG)If there's any indicator its the 5 day 33% positive movement in the ProShares UltraShort Oil & Gas (ETF)(NYSE:DUG).  Remember that the DUG does well when the oil stocks fall.

Today the DUG is already up 8%.

Oil is now trading under $42 a barrel, the job losses is driving everything down today (see: November 533,000 Jobs Lost, 15 Year High).

Here's what Bloomberg.com had to say the comments from Merrill today:


If anything, take it all with a grain of salt, or drop of oil for that matter. 

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