Wednesday, November 19, 2008

Oil Headed for $40

NEW YORK--Crude-oil prices could fall to $40 per barrel by April as demand falls and production becomes more cost-effective, Deutsche Bank said in a report released Wednesday. Prices will fall on "a huge overhang of new, more efficient refining capacity addition into an already-oversupplied market," the investment bank said.

10 Comments:

At 11/19/2008 2:07 PM, Blogger stevedp86 said...

Big oil producing nation says cartel must respond to falling demand by slashing output. OPEC is set to meet Nov. 29.

$40 seems to low for me, I'm content with gas at $2.00 a gallon.

So do you think everyone is still going to be gung ho about alternative energy anymore or is the fad over?

 
At 11/19/2008 4:17 PM, Blogger SBVOR said...

This comment has been removed by the author.

 
At 11/19/2008 4:17 PM, Blogger Marko said...

Peak Oil! Peak Oil!

Just keep repeating it, maybe some day it will be true . . .

 
At 11/19/2008 4:20 PM, Blogger SBVOR said...

Click here and learn why I think oil will be well above $100 (or $150) per barrel by July.

Note that the quantitative data prove that ANWR alone could have prevented the price spikes of 2008 (and, quite probably, the looming price spikes of 2009).

The quantitative data prove that relatively small imbalances between supply and demand can result in a TRIPLING of the price per barrel!

Come July, it will probably be déjà vu all over again.

The seasonal roller coaster prices will continue until demand so far outstrips supply that it becomes a year round phenomenon. Maybe then, we will get serious about boosting supply (unless the Dems are still in power).

ANWR is VERY important. But, we have FAR greater untapped resources beyond ANWR.

 
At 11/19/2008 5:24 PM, OpenID A Texan In Grad School said...

Will Pelosi call for hearings to investigate collusion by the oil companies to lower the price and drive out alternative energy?

 
At 11/19/2008 5:26 PM, Anonymous Anonymous said...

I have to agree with sentiment that $2.00 seems to be a very reasonable price fro gas for most people.

However, there are forces that I think are going to push oil lower.

-Russia and Venezuela; Russia is in a world of hurt and they are likely to flood the market with cheap oil. Think 1998, but with Venezuela joining in.

-Global Warming Hoax; this hoax which has been hoisted on the public has convinced a large number of people that they need to drive smaller cars/conserve energy for the planet etc. That is a dampening effect on prices.

-"Alternative" energy malinvestment- Have you noticed the number of huge ugly windmills which have sprout up EVERYWHERE in the last 5 years. I happen to believe that it is not the best way to produce power, but the capital expenditure has already been made. Just like the internet boom led to overcapacity in high bandwith/cheap fiber optic cable so has the oil/global warming scare led to overinvestment in this field. Poor Boone Pickens.

-Economic downturn; less demand, no need for further comment.

So there you have it.

 
At 11/19/2008 8:32 PM, Anonymous Anonymous said...

Unemployed people won't be able to afford the insurance or increasing registration fees as states raise them to combat falling revenue. $20 bucks a BBL here we come baby. OPEC will simply collapse as it becomes each country for itself.

 
At 11/19/2008 9:17 PM, Blogger destilando cafe said...

Ha! Unemployed people and illegal aliens don't bother with insurance or legitimate license plates. Drive, baby, drive. Oil will go back up. Wait 'n see.

 
At 11/20/2008 4:14 AM, Blogger 1 said...

"Unemployed people won't be able to afford the insurance or increasing registration fees as states raise them to combat falling revenue"...

destilando cafe nails it...

Funny thing about states and falling revenue...

Would it be to much to ask states to cut back on the money they waste on like school lunches, medicaid, and other such silly nonsense...

Considering the amount of extorted tax dollars going to pork, how can states be continually crying poor mouth?

 
At 11/20/2008 8:59 AM, Blogger stevedp86 said...

Anonymous @ 8:32 PM said...
Unemployed people won't be able to afford the insurance or increasing registration fees as states raise them to combat falling revenue. $20 bucks a BBL here we come baby. OPEC will simply collapse as it becomes each country for itself.

Not only that...but people won't be able to afford to drive on the highways in Mass.

Oh...take public transportation? Wait...they just increased the parking lots by $2

Luckily the fares when up in 2007

 

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