Back when the world economy was booming prior to the credit crisis,
speculation about how high the price of oil could go was all the rage
on Wall Street. As demand surged, investment bank Goldman Sachs
famously predicted $200-a-barrel prices, while more provocative commentators saw the price tag reaching $1,000 a barrel.
But
today, as the global economy weakly turns the corner after a staggering
recession, oil prices are struggling to hang on to the $70-a-barrel
range instead. That's at least partly because major demand factors are
easing up. China, for example, is scrambling to rein in growth
amid concerns about an overheating economy following unparalleled
stimulus measures during the crisis. So oil prices are getting hammered
and have tumbled about 13% since Feb. 3 alone.