A year ago, Geology.com News had pointed to an article predicting that the price of crude oil would decline due to high rates of exploration and lowered demand. The prediction was a decline to as low as $30 a barrel. After last summer’s price spike, the price of a barrel of crude is now below $40.
Today, Geology.com News points to this article on the St. Paul Pioneer Press site: Expect higher gas prices down the road.
All that money you’re saving these days at the gas pump? You might want to put it in the bank.
The same cheap oil that’s providing relief to drivers and businesses in an awful economy is setting the stage for another price spike, perhaps as soon as next year, that will bring back painful memories of last summer’s $4-a-gallon gas.
The oil industry is scaling back on exploration and production because some projects don’t make economic sense when energy prices are low. And crude already is harder to find because more nations that own oil companies are blocking outside access to their oil fields.
When the world emerges from the recession and starts to burn more fuel again, higher demand meets lower supply and prices almost certainly will shoot higher.
Some analysts say oil eventually could eclipse $150 a barrel, maybe even on its way to $200. In such a scenario, gasoline would easily cost more than the record high of $4.11 a gallon set last summer.
It is time to start thinking differently about how we live.
Grace and Peace
2 thoughts on “Crude oil predictions”
oil price will never rise again, the opec sheikhs are beating their heads and crying, now opec can drink its oil, don’t worry about oil price, America do not need [****].
As to the comments from Nostradomus, this is indicative of the overall ingnorance of the non-industry community. Yes my friend, oil prices will surge to much greater heights. The OPEC reserves you speak of suffer from the same operative word as do domestic producers. The word my friend is called “depletion”. A word you need in your vocabulary. Simply put, the world reserves are and have been on the downside of the production curve for many years. There is not an unlimited supply as so many would have you believe and if you have not checked lately, the Chinese economy is on a stable recovery. Do the math.