Goldman Sachs: Oil price will fall to $70 US a barrel in 2015
 

Oil price will fall to $70 US a barrel in 2015, Goldman Sachs says - Business - CBC News

One of the world's leading investment banks says the benchmark price of North American oil is going to fall even further, to $70 US a barrel by next spring.

Investment bank Goldman Sachs slashed its forecast late Sunday night for both West Texas Intermediate (known as WTI) and Brent crude ? the two most common types of oil used and sold in North America and Europe.

Goldman Sachs says WTI will go for $75 a barrel in the first three months of 2015. Brent, meanwhile, will change hands at $85 a barrel. Both forecasts are down $15 from what the bank was last expecting. And both are forecast to slip even lower in the second quarter ? historically a seasonally low time for oil prices ? before rebounding a little in the summer of 2015.

If the prediction on WTI proves correct, it will be the lowest price for North American oil since 2010, when crude was on its way higher after cratering during the recession of 2008 and 2009.

Currently, WTI is trading just below $80 US. That's down from more than $100 a barrel as recently as four months ago.

The main reason the bank cited for its call is simple supply and demand ? there's just more oil being produced now than the world needs, the bank says.

A boom in shale oil and gas in North America this year and last has drastically increased the amount of oil in circulation. This month, it's expected that the U.S. will pump out more crude oil than Saudi Arabia does ? the first time that's been the case since the early 1970s.

Continued Oil price will fall to $70 US a barrel in 2015, Goldman Sachs says - Business - CBC News

That is a very positive thing for most of the world's economy.

in my country price can't fall

Seems like the gas stations are keeping the prices up, except for a few blips. But, soon as there's even a hint of prices rising, they jack the prices up instantly:2 cents:

Most gas stations don't make much money if any at all from gas. Their money is made from the huge mark up on snacks, etc.

Gasoline prices have come down 25% in the USA in the last 5 weeks. We are having mid-term elections so some of this may be political here. We may be looking at $0.67/liter $2.59/US Gal USD retail gasoline mid winter. Hopefully, this does not encourage new consumption in the USA with large vehicle and truck sales.

Disclaimer: I own a 8 liter V10 3/4 ton extended cab pick up truck that I dont drive much :1orglaugh

I hope this price would be for the whole world...

So some rich motherfuckers will make few less million...boo fucking hoo.

The really bad thing about lower oil and gas prices is that it will take the impetus off transitioning to new energy sources.

I really believe this is all a plan to fuck Russia.

yes, but it will take 1 year or more

Russia's economic damage is collateral damage I think.
Oil prices have been kept artificially high.
Oil's low value may be as low as $40 to $45 a barrel ...
So, we are talking $2 or less for a gallon of gasoline in the USA next year possibly.

I just came back, was out for a bit -- gasoline is down to 2.91/US gal $0.71/liter :)

Really all depends on how cold and long this winter gets...

Translation: Sell now so we can buy it cheap and increase the price again.

I don't really believe much that Goldman says. I think they want to sway public opinion so they can buy up more oil companies.

Like a big poker game.

It will fuck Canada as well, as this is below profitability for the oil sands projects Mr Harper has going.

Should be a boom for retailers this x-mas. Lots of extra spending money will be out there.