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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

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Badjef Champion Author Florida Posts:4,050 Points:818,815 Joined:Jan 2011	Message Posted: Dec 14, 2012 6:21:26 AM Ignore Badjef Report Abuse 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 Posts:3,175 Points:1,202,780 Joined:May 2009	Message Posted: Dec 13, 2012 9:20:16 AM Ignore wang91554 Report Abuse stupid analysts
paulp24 Champion Author Harrisburg Posts:4,547 Points:823,300 Joined:Dec 2010	Message Posted: Dec 13, 2012 8:01:36 AM Ignore paulp24 Report Abuse Bring it on
remay Champion Author Houston Posts:6,968 Points:2,118,365 Joined:May 2006	Message Posted: Dec 13, 2012 5:49:28 AM Ignore remay Report Abuse "...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 Posts:33,045 Points:2,346,485 Joined:Aug 2006	Message Posted: Dec 13, 2012 12:09:30 AM Ignore tomok Report Abuse 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 Posts:1,359 Points:329,335 Joined:May 2012	Message Posted: Dec 12, 2012 11:24:18 PM Ignore SkooterG Report Abuse Better lower than higher.
bston Champion Author Oklahoma City Posts:1,825 Points:643,250 Joined:Mar 2011	Message Posted: Dec 12, 2012 9:36:57 PM Ignore bston Report Abuse Typical; it figures!
jetskijerry Champion Author North Carolina Posts:3,901 Points:773,245 Joined:Mar 2011	Message Posted: Dec 12, 2012 9:10:03 PM Ignore jetskijerry Report Abuse no chance
ssect8 Champion Author Hartford Posts:7,999 Points:2,094,495 Joined:Jun 2006	Message Posted: Dec 12, 2012 9:07:01 PM Ignore ssect8 Report Abuse I wonder what these idiots at Bank of America are drinking and smoking?
BCM1 Champion Author Pennsylvania Posts:1,864 Points:782,995 Joined:Jun 2007	Message Posted: Dec 12, 2012 9:06:11 PM Ignore BCM1 Report Abuse Wishful thinking.
twiper1 Champion Author San Diego Posts:7,837 Points:1,607,035 Joined:Oct 2008	Message Posted: Dec 12, 2012 9:03:54 PM Ignore twiper1 Report Abuse I want some of what this writer is smoking!!!!
rahcat Champion Author Grand Rapids Posts:2,473 Points:663,925 Joined:Jan 2010	Message Posted: Dec 12, 2012 9:01:01 PM Ignore rahcat Report Abuse June 1998 $11.03 a barrel.
SparkieMi Champion Author Kalamazoo Posts:3,266 Points:589,360 Joined:Sep 2011	Message Posted: Dec 12, 2012 9:00:20 PM Ignore SparkieMi Report Abuse Great post by txkrk....
jackson661 Champion Author Columbus Posts:3,770 Points:1,477,830 Joined:May 2006	Message Posted: Dec 12, 2012 9:00:09 PM Ignore jackson661 Report Abuse ok
TheSnowstorm Champion Author Montreal Posts:8,624 Points:1,914,755 Joined:June 2005	Message Posted: Dec 12, 2012 8:58:49 PM Ignore TheSnowstorm Report Abuse More happy thoughts.... now let's get back to reality.
CCLighthouse Champion Author Hartford Posts:1,008 Points:214,005 Joined:Aug 2012	Message Posted: Dec 12, 2012 8:58:40 PM Ignore CCLighthouse Report Abuse We should be under $2.00 a gal.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:556,980 Joined:Mar 2006	Message Posted: Dec 12, 2012 8:57:36 PM Ignore Dodge_Me Report Abuse Cool
clermont40miles Champion Author Cincinnati Posts:10,576 Points:1,772,940 Joined:Apr 2008	Message Posted: Dec 12, 2012 8:55:04 PM Ignore clermont40miles Report Abuse It ought to be $40 but I'll settle for $50.
carloco75 Champion Author Richmond Posts:3,716 Points:601,115 Joined:Oct 2010	Message Posted: Dec 12, 2012 8:53:28 PM Ignore carloco75 Report Abuse and...
jtfftj Champion Author New Hampshire Posts:2,180 Points:1,249,135 Joined:Sep 2005	Message Posted: Dec 12, 2012 8:52:22 PM Ignore jtfftj Report Abuse "...And a partridge in a pear tree."
WIWalt Champion Author Wisconsin Posts:1,731 Points:415,770 Joined:Mar 2012	Message Posted: Dec 12, 2012 8:52:14 PM Ignore WIWalt Report Abuse yeah, right.
wayoung56 Champion Author Alabama Posts:2,805 Points:819,310 Joined:Oct 2006	Message Posted: Dec 12, 2012 8:50:34 PM Ignore wayoung56 Report Abuse On can always hope, but NoBama will figure out some way to prevent it from happening...
arb0526 Champion Author Greensboro Posts:1,981 Points:411,595 Joined:Mar 2011	Message Posted: Dec 12, 2012 8:49:37 PM Ignore arb0526 Report Abuse It is possible when supply vs demand once natural gas which is plentiful takes hold.
DeeMamma88 Veteran Author San Bernardino Posts:352 Points:283,605 Joined:May 2012	Message Posted: Dec 12, 2012 8:46:22 PM Ignore DeeMamma88 Report Abuse They'll quickly find a reason to jack up our prices
txkrb Champion Author Texas Posts:1,563 Points:639,665 Joined:May 2011	Message Posted: Dec 12, 2012 8:45:27 PM Ignore txkrb Report Abuse 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 Posts:5,569 Points:1,513,105 Joined:Oct 2008	Message Posted: Dec 12, 2012 8:45:03 PM Ignore serrog Report Abuse dreams?
fuelsaverMN Champion Author Twin Cities Posts:2,282 Points:559,080 Joined:Mar 2011	Message Posted: Dec 12, 2012 8:44:27 PM Ignore fuelsaverMN Report Abuse Would gas prices be under $2.00 a gallon?
fuelsaverMN Champion Author Twin Cities Posts:2,282 Points:559,080 Joined:Mar 2011	Message Posted: Dec 12, 2012 8:43:52 PM Ignore fuelsaverMN Report Abuse It would be nice if that happens but we will see.
fuelsaverMN Champion Author Twin Cities Posts:2,282 Points:559,080 Joined:Mar 2011	Message Posted: Dec 12, 2012 8:43:21 PM Ignore fuelsaverMN Report Abuse We will see if that happens.Would that mean lower prices aT THE PUMP.
mstearno Champion Author Dayton Posts:8,071 Points:1,732,210 Joined:Jan 2008	Message Posted: Dec 12, 2012 8:42:32 PM Ignore mstearno Report Abuse could?
Jeannemarie Champion Author Las Vegas Posts:27,700 Points:2,035,640 Joined:Aug 2005	Message Posted: Dec 12, 2012 8:41:39 PM Ignore Jeannemarie Report Abuse Be nice to have that going on but I doubt it would help much.
rjoeh Champion Author Michigan Posts:7,081 Points:2,470,965 Joined:Jun 2004	Message Posted: Dec 12, 2012 8:40:45 PM Ignore rjoeh Report Abuse You can bet on that for sure.
jhawkdville Rookie Author San Diego Posts:50 Points:30,475 Joined:Dec 2011	Message Posted: Dec 12, 2012 8:40:44 PM Ignore jhawkdville Report Abuse You can bet any "low" is only temporary!
Titan_62 Champion Author Maryland Posts:1,468 Points:329,405 Joined:Apr 2011	Message Posted: Dec 12, 2012 8:40:17 PM Ignore Titan_62 Report Abuse LOL... stop writing about it...(reporting it); Just Do It!
southrob Champion Author Tucson Posts:3,600 Points:688,175 Joined:Mar 2011	Message Posted: Dec 12, 2012 8:39:32 PM Ignore southrob Report Abuse good finally common sense sinking in... more oil means lower prices
Vitobug Champion Author El Paso Posts:1,955 Points:641,435 Joined:May 2011	Message Posted: Dec 12, 2012 8:38:40 PM Ignore Vitobug Report Abuse So does this mean that gas prices will drop by almost 50%?
tco9436 Champion Author Connecticut Posts:1,777 Points:723,250 Joined:Mar 2010	Message Posted: Dec 12, 2012 8:37:46 PM Ignore tco9436 Report Abuse Sure!
2granny Champion Author Michigan Posts:9,580 Points:1,467,230 Joined:Apr 2009	Message Posted: Dec 12, 2012 8:36:59 PM Ignore 2granny Report Abuse It would be nice to see pump prices drop.
s6sputnik Champion Author Austin Posts:6,222 Points:1,308,880 Joined:Jun 2007	Message Posted: Dec 12, 2012 8:34:50 PM Ignore s6sputnik Report Abuse Sure!
troutbum7 Veteran Author Nevada Posts:306 Points:157,165 Joined:Oct 2012	Message Posted: Dec 12, 2012 8:32:27 PM Ignore troutbum7 Report Abuse 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 Posts:734 Points:362,375 Joined:Mar 2012	Message Posted: Dec 12, 2012 8:31:19 PM Ignore wcp3rd Report Abuse when I see it at the pumps I'll believe it
regout Champion Author Quebec Posts:2,960 Points:833,680 Joined:May 2010	Message Posted: Dec 12, 2012 8:30:03 PM Ignore regout Report Abuse Another good news but we will belive it when it will happen.
RitaVespa Champion Author Oregon Posts:2,981 Points:793,010 Joined:Jan 2011	Message Posted: Dec 12, 2012 8:27:51 PM Ignore RitaVespa Report Abuse Wonder if the price at pump will drop accordingly
charg3rguy1991 All-Star Author Greensboro Posts:761 Points:244,440 Joined:Sep 2012	Message Posted: Dec 12, 2012 8:27:47 PM Ignore charg3rguy1991 Report Abuse here's hoping
suzmar Champion Author Texas Posts:2,212 Points:873,340 Joined:Jun 2006	Message Posted: Dec 12, 2012 8:25:39 PM Ignore suzmar Report Abuse I agree with surewatcher!
bigdipperMS Champion Author Mississippi Posts:1,517 Points:537,750 Joined:Apr 2011	Message Posted: Dec 12, 2012 8:25:29 PM Ignore bigdipperMS Report Abuse Cannot see oil below $80 per barrel for a very long period of time.
Gas4Gore Champion Author Detroit Posts:2,421 Points:423,875 Joined:Jan 2010	Message Posted: Dec 12, 2012 8:23:57 PM Ignore Gas4Gore Report Abuse Okay!
Darwin00 All-Star Author Mississippi Posts:830 Points:271,155 Joined:Dec 2010	Message Posted: Dec 12, 2012 8:23:56 PM Ignore Darwin00 Report Abuse ummmm
Gary9696 Champion Author Detroit Posts:1,119 Points:229,730 Joined:Jul 2008	Message Posted: Dec 12, 2012 8:20:42 PM Ignore Gary9696 Report Abuse Obama is going to fix everything right. Isn't that why he was re-elected?
v3zx Rookie Author Atlanta Posts:15 Points:32,975 Joined:Aug 2012	Message Posted: Dec 12, 2012 8:20:23 PM Ignore v3zx Report Abuse interesting