Crude oil will not move southward for ever

The recent precipitous fall in energy prices has prompted many analysts to forecast even lower prices, with some talking about Brent going down to $20 a barrel. But from experience, one should know that it would be foolhardy to get carried away by wild price movements and speculative bets. Forecast of $2,000 a troy ounce for gold is another case in point.

Without doubt, the oil market is and will continue to remain volatile for sometime, possibly into the second quarter. But, from its recent lows, crude oil has already started to recover, with Brent testing $40 a barrel on Tuesday, unable of course to hold on to the gains.