Photo: lehighvalleylive.com
Oil prices should drop to $50 a barrel, about half of today’s $105 a barrel, by the end of the year, Gulf Oil CEO Joe Petrowski said earlier this week.
Petrowski’s prediction comes just as gasoline prices in the United States went up an average of 40 cents in only one week, with some areas reporting an increase of more than 50 cents up to almost $4 a gallon. The bad news is that while oil prices may drop by half, gasoline won’t come two times cheaper.
“It’s simple economics. We’re producing record amounts of oil and OPEC supplies are higher,” Joe Petrowski said, adding that “$50 oil does not translate into $2 gasoline” because it still has to be refined and transported.
Gulf Oil CEO explained that the crude oil price drop was expected due to low oil demand in the energy sector, as well as natural gas “taking a lot of the heating sector away”.
Story via CNBC
“It’s simple economics. We’re producing record amounts of oil and OPEC supplies are higher,” Joe Petrowski said, adding that “$50 oil does not translate into $2 gasoline” because it still has to be refined and transported.
Gulf Oil CEO explained that the crude oil price drop was expected due to low oil demand in the energy sector, as well as natural gas “taking a lot of the heating sector away”.
Story via CNBC
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