Saudi Prince: Oil will never return to $100

None
None
NEW YORK. KAZINFORM - The days of $100 oil prices may be gone forever.

At least that's what Saudi Prince Alwaleed believes about oil, which plunged below $46 a barrel on Monday for the first time since the spring of 2009. The well-known billionaire investor recently told USA Today he's positive we're "never" going to see $100-a-barrel oil prices again, CNN reports. "There's less demand, and there's oversupply. And both are recipes for a crash in oil. And that's what happened. It's a no-brainer," Alwaleed told the paper. The comments from the prince mirror ones by Ali al-Naimi, the Saudi oil minister who said $100 oil may be a thing of the past in December. Cheap gas here to stay? If those predictions are accurate, it could also mean gas in the U.S. might not go above $3 again. Thanks to the oil meltdown, the national average price of gas has plunged to $2.13, compared with $3.31 a year ago, according to AAA. Back in 2008, oil broke through the $100 level for the first time, leading some to predict prices would spike to $200 due to surging demand from China and India. Then oil plummeted to $34 during the Great Recession before rebounding sharply. Crude bounced between $90 and $110 over the past three years, trading above $100 as recently as late July. But that's when prices collapsed under the weight of a supply glut caused by North American production, including U.S. shale companies that need higher prices to be profitable.

Full story

Currently reading
x