| Espresso said: Oil price falling is great news. That means cheaper fuel prices at the bowser. |
It also means higher prices in the medium/long term if investment in drilling is reduced.
| bigjon said: lets make bets on how low it does... my new prediction is 50 dollars a barrel. People are freaking out, even gold is freefalling. |
It's really hard to predict oil prices, they're very volatile.
My guess would be they'll start increasing from tomorrow after OPEC's meeting, reaching $80 or $90. Then everything depends on how the economy does... Massive layoffs and factories closing would reduce demand and potentially make the price fall again. At some point, reduced supply will take its toll again (exacerbated by reduced investment in developing new reserves), and we could see oil reaching the same stratospheric prices we've seen this year. So mine would be a prediction of "slightly/moderately up, slightly/moderately down, radically up".
One thing's for sure... OPEC doesn't want oil to go as low as $50. Some of the members have specifically cited $70 as the bottom price they'd like to see.
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