The Coming Oil Glut and $30 Oil, $1.50 Gas?
Submitted by CARPE DIEM
The tripling of oil prices since the summer of 2003 has unleashed forces that within the next two or three years will bring oil prices tumbling back down to below $50 a barrel. Looking even further ahead, prices could easily fall to $30 a barrel or even lower.
With prices close to the inflation-adjusted record, energy companies and governments are investing heavily in facilities that generate crude and crude substitutes. Consumers of fuel oil and gasoline are starting to economize, and over time, these changes in behavior will shift the balance of power in their favor. When that happens, an oil glut will emerge, and the price will plummet. So before you trade in your Cadillac Escalade for a Toyota Prius, think twice: $1.50-a-gallon gas might not be gone forever.
Read more here.
(HT: Newmark’s Door)
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October 24th, 2008 at 11:34 am
i blame the high price of oil for killing the current world economy. usa helped with its gas guzzler power love. living to excess 3000sq ft houses helped. and a great part-speculators. so, yep! it’ll come down. 30, 20, likely.