Cheap Oil Won't Support Investment

Crude oil futures dipped below $40 per barrel at the beginning of the year, having dropped from record highs over summer 2008. They appear now to have bottomed out, rising to around $50 per barrel from the second half of March. However, optimism remains predicated on an early–third to fourth quarter 2009–recovery in the world economy. Moreover, levels of demand, stock and surplus capacity suggest that oil market fundamentals remain weak.
Forbes