Is it a good time to invest in oil?

If you are asking that question you may find this article a bit disconcerting.

IEA slashes forecast for oil demand – again
Agency sees global demand declining by 2.4 million barrels per day in 2009 amid recession.

LONDON (Reuters) — World oil demand will drop by a hefty 2.4 million barrels per day in 2009, the International Energy Agency said on Friday, citing a growing consensus any recovery in the economy would not take place until next year.

As the rate of oil demand contraction reached levels last seen in the early 1980s, it said outright demand for this year was expected to be 83.4 million bpd, around one million bpd less than in its previous monthly report.

“This is a pretty exceptional period of demand collapsing,” said David Fyfe, head of the oil industry and markets division at the IEA, the Paris-based advisor to oil-consuming countries.

He could not say whether there would be further downward revisions as a shrinking world economy chokes off energy use.

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