“Could Oil Prices Go To $10/Barrel?” was posted yesterday asking what is the absolute rock bottom price for oil. There are lots of responses to the question. But to sum it up, there is still no light at the end of the tunnel.
In 1998, I experienced the worst decline in oil price which affected me psychologically. It was just after a month after arriving in Saudi Arabia. The price went down to $8 per barrel from $18 per barrel.
As our project was government funded with its budget a portion of the oil revenue of Saudi Arabia, the project went into limbo during that time. Our company slashed more than half of its employees. Nobody knew who will get the knife that made me very uncomfortable being just a month in the company. Luckily, I was spared to finish up seven years later.
Today another disturbing news came up. Price at the pump to drop to under $2.
Not until this down trend will level off, world economy will suffer, more unemployment and more families to get hungry.