A lot of people and market analyzers are of the opinion that oil prices are likely to take a dip in 2012 as even the oil industry is sure to be affected by the hard hitting blows of recession. After analyzing a lot of points and details, the analysts have come to this common conclusion. They believe that along with the price, the demand for oil is also likely to dip drastically. There is a saturation point for all the industries and it seems that oil industries have reached the saturation limit.
After making unreasonable amount of profit for the last years, the oil industries need to remain a bit quiet for some time. It is not that there would be zero demand since oil is required for daily activities. All the vehicles and air planes need oil for running, so definitely all countries would be in need of oil. However, the rising demand is likely to fall down owing to the blows of recession.
With lots of countries failing miserably at the financial market, bearing the oil expenses might be too much. This can lead to decrease in oil demand. As we have always known, demand and price are always related and so the experts of market analysis believe that this falling demand would hit the oil industry severely as the prices will be slashed accordingly.
What actually happens remain to be seen, however, so far the logic seems to be exactly right and there is no reason as to why this should not happen! One thing that can make the whole theory go awry is if the recession subsides easily and countries recover easily from this supposedly big recession, then the whole theory of low demand and price slash would fail entirely. But, seeing the bleak future, swift recovery from recessions seems to be a fairytale.
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