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U.S. oil prices could sink to $50

CNN Money -- U.S. oil prices could sink to $50 a barrel at some point over the next two years, according to analysts at Bank of America Merrill Lynch.

But don't expect a corresponding drop in gas prices.

Merrill analysts expect U.S. oil prices to still average about $90 a barrel over the same time period. Global oil prices meanwhile, which more closely dictate the price of gasoline in the United States, are expected to remain high as growth in global oil supplies lags population growth and economic output.
The drop in U.S. oil prices would likely be temporary, caused by the difficulty in moving huge amounts of new oil from places like North Dakota's Bakken shale or Texas' Eagle Ford to market. Already, all the new production has led to a glut of oil in the region.


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Submitted Dec 12, 2012 By: BurntOrange
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: U.S. oil prices could sink to $50 Back to Topics
REPLIES (newest first) Post a Reply
Badjef
Champion Author Florida

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Message Posted: Dec 14, 2012 6:21:26 AM

I keep hearing there is more Natural Gas than oil is being found in North Dakota.

So, when you hear the word "gas", ask the person to make the distinction.

Generally, Natural Gas is hit, first, though before the oil in the drilling process.

Jeff in Sa-ra-so-ta!
wang91554
Champion Author San Jose

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Message Posted: Dec 13, 2012 9:20:16 AM

stupid analysts
paulp24
Champion Author Harrisburg

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Message Posted: Dec 13, 2012 8:01:36 AM

Bring it on
remay
Champion Author Houston

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Message Posted: Dec 13, 2012 5:49:28 AM

"...drop in U.S. oil prices would likely be temporary, caused by the difficulty in moving huge amounts of new oil ..."

WHAT? That would mean a drop in SUPPLY, and HOW could that correspond to a drop in PRICE?

Whatever!
tomok
Champion Author Portland

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Message Posted: Dec 13, 2012 12:09:30 AM

U.S. oil prices could sink to $50? It could sink to $50 but it's highly unlikely. It would be nice if fuel prices would do the same, the more oil goes down, the more fuel prices at the pump goes down.
The price at the pump needs to go down to $2/gallon, *$3, *$3.50/gallon or *$4.00 is Not the new low! Cheaper fuel prices, the better the economy will come back and the better 'Coming out of the closet' Sneeky's lousy, smoke and mirrors, lack of jobs, dog and pony show and in the crapper economy will come back that much faster. Sneeky's economy is not improving but continues to hurt the population and the job numbers continue to be down! The mindless Sheep that voted him back into office are also to blame for this lousy economy that does Not improve anytime too soon.
Whatever the size or shape of the vehicle, vehicle manufactures Produce and the population ‘Drives’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
XII/XXII/MMXII!
SkooterG
Champion Author Phoenix

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Message Posted: Dec 12, 2012 11:24:18 PM

Better lower than higher.
bston
Champion Author Oklahoma City

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Message Posted: Dec 12, 2012 9:36:57 PM

Typical; it figures!
jetskijerry
Champion Author North Carolina

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Message Posted: Dec 12, 2012 9:10:03 PM

no chance
ssect8
Champion Author Hartford

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Message Posted: Dec 12, 2012 9:07:01 PM

I wonder what these idiots at Bank of America are drinking and smoking?
BCM1
Champion Author Pennsylvania

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Message Posted: Dec 12, 2012 9:06:11 PM

Wishful thinking.
twiper1
Champion Author San Diego

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Message Posted: Dec 12, 2012 9:03:54 PM

I want some of what this writer is smoking!!!!
rahcat
Champion Author Grand Rapids

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Message Posted: Dec 12, 2012 9:01:01 PM

June 1998 $11.03 a barrel.
SparkieMi
Champion Author Kalamazoo

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Message Posted: Dec 12, 2012 9:00:20 PM

Great post by txkrk....
jackson661
Champion Author Columbus

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Message Posted: Dec 12, 2012 9:00:09 PM

ok
TheSnowstorm
Champion Author Montreal

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Message Posted: Dec 12, 2012 8:58:49 PM

More happy thoughts.... now let's get back to reality.
CCLighthouse
Champion Author Hartford

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Message Posted: Dec 12, 2012 8:58:40 PM

We should be under $2.00 a gal.
Dodge_Me
Champion Author Atlanta

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Message Posted: Dec 12, 2012 8:57:36 PM

Cool
clermont40miles
Champion Author Cincinnati

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Message Posted: Dec 12, 2012 8:55:04 PM

It ought to be $40 but I'll settle for $50.
carloco75
Champion Author Richmond

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Message Posted: Dec 12, 2012 8:53:28 PM

and...
jtfftj
Champion Author New Hampshire

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Message Posted: Dec 12, 2012 8:52:22 PM

"...And a partridge in a pear tree."
WIWalt
Champion Author Wisconsin

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Message Posted: Dec 12, 2012 8:52:14 PM

yeah, right.
wayoung56
Champion Author Alabama

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Message Posted: Dec 12, 2012 8:50:34 PM

On can always hope, but NoBama will figure out some way to prevent it from happening...
arb0526
Champion Author Greensboro

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Message Posted: Dec 12, 2012 8:49:37 PM

It is possible when supply vs demand once natural gas which is plentiful takes hold.
DeeMamma88
Veteran Author San Bernardino

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Message Posted: Dec 12, 2012 8:46:22 PM

They'll quickly find a reason to jack up our prices
txkrb
Champion Author Texas

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Message Posted: Dec 12, 2012 8:45:27 PM

We will never again see oil prices sustained below $60 a bbl
The cost of exploration is too high, oil companies will not expend the money for exploration with a chance for recovery of the costs
and most new wells have production costs of %50 a bbl or more
They will shut down costly and marginal wells if the price drops near production costs
serrog
Champion Author Nova Scotia

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Message Posted: Dec 12, 2012 8:45:03 PM

dreams?
fuelsaverMN
Champion Author Twin Cities

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Message Posted: Dec 12, 2012 8:44:27 PM

Would gas prices be under $2.00 a gallon?
fuelsaverMN
Champion Author Twin Cities

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Message Posted: Dec 12, 2012 8:43:52 PM

It would be nice if that happens but we will see.
fuelsaverMN
Champion Author Twin Cities

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Message Posted: Dec 12, 2012 8:43:21 PM

We will see if that happens.Would that mean lower prices aT THE PUMP.
mstearno
Champion Author Dayton

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Message Posted: Dec 12, 2012 8:42:32 PM

could?
Jeannemarie
Champion Author Las Vegas

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Message Posted: Dec 12, 2012 8:41:39 PM

Be nice to have that going on but I doubt it would help much.
rjoeh
Champion Author Michigan

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Message Posted: Dec 12, 2012 8:40:45 PM

You can bet on that for sure.
jhawkdville
Sophomore Author San Diego

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Message Posted: Dec 12, 2012 8:40:44 PM

You can bet any "low" is only temporary!
Titan_62
Champion Author North Carolina

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Message Posted: Dec 12, 2012 8:40:17 PM

LOL... stop writing about it...(reporting it); Just Do It!
southrob
Champion Author Tucson

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Message Posted: Dec 12, 2012 8:39:32 PM

good finally common sense sinking in... more oil means lower prices
Vitobug
Champion Author El Paso

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Message Posted: Dec 12, 2012 8:38:40 PM

So does this mean that gas prices will drop by almost 50%?
tco9436
Champion Author Connecticut

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Message Posted: Dec 12, 2012 8:37:46 PM

Sure!
2granny
Champion Author Michigan

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Message Posted: Dec 12, 2012 8:36:59 PM

It would be nice to see pump prices drop.
s6sputnik
Champion Author Austin

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Message Posted: Dec 12, 2012 8:34:50 PM

Sure!
troutbum7
Champion Author Nevada

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Message Posted: Dec 12, 2012 8:32:27 PM

Surewatcher is right this is the first wave of the storm that is coming batten down the hatches,it is going to be a rough one hopefully we will surface from it.
wcp3rd
All-Star Author New Jersey

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Message Posted: Dec 12, 2012 8:31:19 PM

when I see it at the pumps I'll believe it
regout
Champion Author Quebec

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Message Posted: Dec 12, 2012 8:30:03 PM

Another good news but we will belive it when it will happen.
RitaVespa
Champion Author Oregon

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Message Posted: Dec 12, 2012 8:27:51 PM

Wonder if the price at pump will drop accordingly
charg3rguy1991
Champion Author Greensboro

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Message Posted: Dec 12, 2012 8:27:47 PM

here's hoping
suzmar
Champion Author Texas

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Message Posted: Dec 12, 2012 8:25:39 PM

I agree with surewatcher!
bigdipperMS
Champion Author Mississippi

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Message Posted: Dec 12, 2012 8:25:29 PM

Cannot see oil below $80 per barrel for a very long period of time.
Gas4Gore
Champion Author Detroit

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Message Posted: Dec 12, 2012 8:23:57 PM

Okay!
Darwin00
Champion Author Mississippi

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Message Posted: Dec 12, 2012 8:23:56 PM

ummmm
TSgtCarverRetired
Champion Author Detroit

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Message Posted: Dec 12, 2012 8:20:42 PM

Obama is going to fix everything right. Isn't that why he was re-elected?
v3zx
Rookie Author Atlanta

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Message Posted: Dec 12, 2012 8:20:23 PM

interesting
abcdMA
Champion Author Worcester

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Message Posted: Dec 12, 2012 8:18:48 PM

if it does drop that far it will be because of a total economic downturn caused by massive overspending by the government
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