IMF set for sharp cuts in global growth forecasts… February contract expires up 6 percent on short-covering… Focus on bearish demand; U.S. crude stocks data seen up…

Russian gas deal, Gaza ceasefire ease supply concerns… World oil demand expected to fall in 2009… U.S. holiday leads to low trading volumes…

Oil prices could fall as low as $20 a barrel in early 2009, says Jason Simpkins. But don’t expect these low prices to last long. Dwindling investment will prompt a longer-term supply crunch, which will send crude to new record highs. Jason gives seven ways to profit from this coming spike.

Crude oil prices will likely remain low in the short term. Supply cuts will not keep pace with demand destruction in the near future. And that could send gas prices below $1 a gallon by Easter, says David Fessler. He gives two ways investors can turn their savings at the pump into big profits.

President-elect Barack Obama has made no bones about wanting to jump-start the renewable energy markets – pledging $150 billion for the development of biofuels, solar and wind power, other alternative energy sources during his first term.

IEA predicts 2009 oil demand growth after 2008 contraction… Saudi Nov oil output complies with OPEC target-oil min… Expectations of deeper supply cut by OPEC next week

In the energy market Wednesday, oil not only stayed below the $60 benchmark, it swooned further, with crude for December delivery closing at $56.16/barrel, down $3.17. December reformulated gasoline lost 5.8 cents, to $1.2481/gallon.

Thank goodness for MoneyWeek, that’s all I can say. Because, aside from a couple of noble souls at the Daily Telegraph, nobody else in the mainstream media gets it.

Earlier this month, I questioned whether the recent spike in oil prices was a potential bubble. The price of crude has more than doubled in a year and there are some reasonable doubts whether oil can maintain these levels.

Exactly 12 months ago, West Texas Intermediate crude oil was trading at just under $63 a barrel.