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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.
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.
"No one expected output to grow by a million barrels per day last year," Francisco Blanche, Merrill's head of commodity research, said at a press briefing in New York. "No one."
As a result, oil has been accumulating in Cushing, Okla. -- home to the convergence of several pipelines and dozens of oil storage tankers that acts as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate.
Cheap oil for a few years would end the recession... I can't be the only one who notices things start tanking when oil prices are high and get better when they drop.
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.
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.
"No one expected output to grow by a million barrels per day last year," Francisco Blanche, Merrill's head of commodity research, said at a press briefing in New York. "No one."
As a result, oil has been accumulating in Cushing, Okla. -- home to the convergence of several pipelines and dozens of oil storage tankers that acts as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate.
So does this mean that we'll see gas prices drop to around $2/gal any time soon???
I'm waiting for him to step on domestic oil production and here it's the best it's ever been.
What we pay at the pump has more to do with speculation in oil futures and indices than anything else.
We have always had the ability to produce more oil. Why should the big oil companies invest massive amounts of money in doing so when a greater supply will depress prices and profits?
Exxon-Mobile is the most profitable corporation and does not pay a dime in federal income tax. It is in their best interests to fund the super pacs to champion the teaparty and focus people on the idiot Obama phone Lady and assorted social issues.
Last U.S. refinery was built 1976 thanks to red tape and regs.
The newest refinery begun operations in 2008 in Douglas, Wyoming, and some older ones have been modernized, like the Orion Refinery which went through massive changes to get it up to date.
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