$25 a Barrel for Oil Predicted

Dec. 4 (Bloomberg) -- U.S. stocks fell for the first time in three days, pushed down by concern General Motors Corp. may file for bankruptcy and a plunge in energy shares following Merrill Lynch & Co.’s prediction that oil will hit $25 a barrel.

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Crude oil tumbled 6.8 percent to $43.59 a barrel in New York, the lowest price since January 2005. It has plunged 70 percent since the closing record of $145.29 set in July and may fall below $25 next year if the recession that’s slashing fuel demand around the world spreads to China, Francisco Blanch, commodity strategist at Merrill Lynch, wrote in a report today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIUEV3pCOJeo&refer=worldwide

Gulf Oil CEO says gas could hit $1 next year

Gulf Oil CEO Joe Petrowski said on Wednesday that the price of oil could sink to $20 per barrel, and there is a chance gasoline prices could drop as low as $1 per gallon by early next year.

Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, the Brockton native said that after speculators drove oil prices up, there is a chance that the market will overshoot on the way back down, resulting in much lower prices at the pump.

http://www.patriotledger.com/business/x1881115149/Gulf-Oil-CEO-says-lower-gas-prices-ahead

Anyone think it could really go that low??? What a roller-coaster! There goes "drill baby drill" for now.

My guess is never. Exxon/Mobil and the rest of the oil companies will continue to rake in record breaking profits...with no penalty and no windfall taxes.

PB

Oil has dropped from $150 a barrel to $43, gas has dropped from $4.50 a gallon to $1.59 where I am today. Do you see a pattern emerging here?

You need to download a new tune to your I-pod bucky, that old one makes no sense.

and last time I was listening to him he didn't seem to be the kind to take to kindly to oil companies gouging us consumers. I may be wrong but I don't really think I am. Hey having hope is a good feeling, try it sometime. :-)

They're running scared at the thought of alternative energy.

Plus, they've already broke the bank (that being us consumers who no longer have money).

and fuel efficient vehicles. Go buy your big SUV, maybe this will help save the US auto industry short term. We are so being manipulated, as soon as things get better, watch the price of gas increase steeply. It may not appear cost effective to invest in technology now, I say wrong, this is the bogey that the Big 3 were seduced by and why they are in a world of hurt now. They need to increase market share, the "per car legacy cost" will decrease substantially once the economy improves which it will and folks are again looking for energy efficient environmentally friendly cars.

They really need to start figuring out how to make plug-in hybrids cause those prices are only temporary.