The era of US$20 oil is almost here as crude prices hit 12-year lows

New York

THE world mostly ignored Ed Morse 11 months ago when the head of commodities research at Citigroup said oil could drop as low as US$20.

It's paying attention now that crude has tipped below US$30.

BP plc slashed 4,000 jobs, Petroleo Brasileiro slashed its spending plan and Petroliam Nasional warned that it faces several tough years before crude futures in the US sank into the US$20s for the first time in more than 12 years.

Mr Morse, who wrote in a Feb 9 research note that oil could fall "perhaps as low as the US$20 range for a while", said o…