Beutel: Crude Could Hit $20 A Barrel

By CNBC.com
Monday, 27 Oct 2008 | 8:13 AM ET

A fast and furious as the crude oil market selloff has been, it's far from over, says one expert.

Currency & Crude
An update on the markets, the dollar and crude, with Peter Beutel, Cameron Hanover and Boris Schlossberg, GFT Forex

"The pendulum does swing much faster than we give it credit for," says Peter Beutel of Cameron Hanover.

Beutel says $37 a barrel is likely, even $20 a barrel isn't out of the question.

"If we look at every bear market over last 30, we always cut the high by four," says beutel, which is how he gets the $37 number.

(Watch the accompanying video for the full interview with Beutel...)

Crude neared $60 Monday, having trade near $150 in July.

Beutel warns that though consumers and investors may welcome cheap oil again, we need to not repeat our mistakes of the past, when low prices yielded a lack of investment in new technology and alternative fuels.

"We're going to get too low," he warns. "We're going to kill a lot of alternatives."

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