Oil prices could fall as low as $25 a barrel in 2009 if the recession hitting the US, Europe and Japan extended to China, the world's engine of commodities demand growth in the past few years, Merrill Lynch warned yesterday.
Francisco Blanch, head of commodities research at Merrill Lynch in London, said his main scenario was for oil prices to average $50 a barrel next year but warned: "A temporary drop below $25 is possible if the global recession extends to China."
