Michael Hewson at CMC Markets UK says oil prices reflect the market’s expectation of no growth in Europe for the next few years, and may fall as low as $76 a barrel (Brent) in the next six months, despite Iran causing a rally in the short term – the overall outlook is down, based on the lack of economic growth.

Analysts expect oil to recover as an EU ban on Iranian oil takes effect, central banks act to protect growth and on speculation that OPEC will curb some of its excess supply.

Sanford C. Bernstein said the drop below the marginal cost of production of $92 a barrel in 2011 marks the start of the next oil price up-cycle

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