NEW DELHI: Crude oil is on a downward spiral and analysts now see its price slipping below 100-dollar per barrel mark by next month -- a far cry from the forecast of 200-dollar level given a few weeks ago.
With signs of slowdown engulfing most of the economies across the world, declining demand and easing geo-political tensions, the crude prices might return to double-digit figures, analysts believe.
The prices have already slumped by over one-fifth from the record high levels of over 147 dollars on July 11 and slipped below 115 dollar per barrel on New York Mercantile Exchange last week.
As long as the bull-run was on in crude oil market, analysts were forecasting that a level of 200 dollars was not far away and a 150-dollar estimate was being made for October itself.
"Crude has lost quite a lot in the last few weeks and USD 100 a barrel is of course within reach by September with demand falling amid global slowdown," commodity brokerage firm Karvy Comtrade's Research Head Harish Galipelli said.
Demand is expected to come down as major economies like the US have hiked interest rates to contain inflation, Harish said, adding that a similar situation prevails in China as well as India.
A significant rise in dollar against major currencies has also affected prices, he added.
"If demand falls drastically then it is quite possible to touch USD 100 per barrel level in the coming weeks," Religare Commodities' Commodity Business Head Jayant Manglik said. A fall below the 100-dollar mark would wipe off nearly entire gain in the crude prices this year.
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