Saudi Billionaire: "Oil May Never Reach $100/Barrel Again"

[Economy 33,668]

http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/

 

The article is really long so im only highlighting the main point... but basically because of so many new players in the market with the revolution of non-conventional reserves with shale oil as well as oil sands... theres many new players and competitors to flood the market with oil

 

at the same time the world is more energy efficient in modern times with more fuel efficient cars and energy efficient technology so consumption will not rise as quickly from now on

 

slower growth demand long term, and more oil available means supply shortages are unlikely to ever happen again anytime soon...

 

that being said, prices AS LOW as now may not be maintained cause many oil sands and shale producers need $60 to $70 a barrel to break even and production long term will correct to those prices

 

 

Q: Will prices continue to fall?

 

A: If supply stays where it is, and demand remains weak, you better believe it is gonna go down more. But if some supply is taken off the market, and there's some growth in demand, prices may go up. But I'm sure we're never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial. It's not correct.

 

 

[Prometheus 1,494]

God I hope so. With the cost of living...

 

It was costing me $45 a week to fill up (I'm a commuting student). Now it's taking around $25.

[Miranda Sings 1,704]

It's so relieving to fill up my car for $25 

[Spyro 8,253]

It's so relieving to fill up my car for $25 

 

$20 and fills me with 320-350 miles ^_^

[Economy 33,668]

$20 and fills me with 320-350 miles ^_^

that must be a really fuel efficient car :udidnt:

[Miker 5,683]

that must be a really fuel efficient car

 

Maybe that's with a tail wind and traveling downhill ...... :)

[Gatlyn 778]

Your threads are always so interesting to me, Economy. I always picture Cher herself talking about this stuff. :)

[LeoFameMonster 1,585]

Canada's oil sands need 90 dollars to break even and as we stand it has dropped to 89.9 cents in Toronto and lower in other parts of the country.

 

Our prime minster and other heads of government also said that they want to produce more oil 300,000 more barrels this year alone. Which is imo not smart since Canada's dollar has dropped and there is speculation that the economy is falling.

 

It is obvious there will be a surplus and when there is gas prices will continue to drop (canada's largest export).

[touchmetouchme 0]

I mean I love the low gas prices. specially for my lexus but I'm pretty sure it's a bad sign :koons:

[freebit 5,321]

I'm no expert, but I think it could go up decently again tbh. Another conflict in Iraq, and a collapse of shale oil production would be obviously needed. 

 

I think the whole shale oil thing is going to make it a lot more difficult for it to go up quite as high though. 

[MikeGoneGaga 86]

It's so relieving to fill up my car for $25 

[Miker 5,683]

What better way to reduce competition in the oil market then to undercut the prices so other sources can't afford to compete. It makes perfect sense to me. I have never trusted OPEC anyway. It's all about them in control.

[Brainiac 8,661]

All I know is that I'm happy it's not costing me a fortune to fill up my car anymore. Hoping it stays that way.

[River 52,552]

Question, I don't really understand all this oil thingy, but, isn't it supposed to make the flights cheaper too? or any other product? because delivery needs to be cheaper now, if the oil is cheap, so why nothing is really changing and still super expensive?

[bionic 14,278]

But it'll have to go back up at some point, right?

 

So could people just fill up lots of barrells now when its cheap then only buy it again if the price is lower/cheaper (obviously this only works in theory)