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Page added on July 16, 2013
Expect $50 oil , but not $2 gas , Gulf Oil CEO says
Oil prices should be about half of today’s $105 a barrel by the end of the year, Gulf Oil CEO Joe Petrowski predicted on CNBC on Monday.
He stressed on “Squawk Box” that this trend is mostly on the supply side because record amounts of oil and natural gas are being produced in the United States and in Canada and OPEC supplies are higher.
But “$50 [a barrel] oil does not translate into $2 gasoline,” he said, because it still has to be refined and transported.
In the past three months, the price of oil has risen 20 percent. And that’s pushed gas prices up 14 cents in the past week alone to $3.613, according to AAA’s Daily Fuel Gauge Report.
(Read More: Oil rises on supply concerns, gasoline prices leap)
Making his case for a steep crude drop, Petrowski said, “Traveling is picking up, but we’re using much less oil. In fact, we’re using no oil in the energy sector. [And] natural gas is taking a lot of the heating sector away.”
But he said the slightly weaker demand for oil is not cause for concern in terms of overall economic growth.
18 Comments on "Expect $50 oil , but not $2 gas , Gulf Oil CEO says"
Luc on Tue, 16th Jul 2013 9:56 am
Big Oil=One Big Lie!
Arthur on Tue, 16th Jul 2013 10:09 am
I do not know what the oilprice is going to be by December 31, but I am starting to suspect that sadly oil prices are more likely to be 50$ than the all time high of 143$.
If I had to gamble my useless guess would be 90-95$.
TIKIMAN on Tue, 16th Jul 2013 12:03 pm
Oh good.
Even if the price drops to $2, everyone will hire employees, then when the price goes back to $4, everyone will lay off employees.
Thus completing the great circle of the economy. It’s gonna be a rollor coaster people, up and down until we finally reach the bottom.
ronpatterson on Tue, 16th Jul 2013 1:02 pm
The above is supposed to contain an imbedded video. I don’t see it but it can be found at:
http://www.cnbc.com/id/100886286
rollin on Tue, 16th Jul 2013 1:37 pm
Get the clue people, the man is predicting a depression.
GregT on Tue, 16th Jul 2013 2:52 pm
I call total bullshit on this one, but if this prediction does turn out to be correct, we are in for a very dire future, much sooner than I had thought.
keith on Tue, 16th Jul 2013 3:16 pm
At least, he and the interviewer admit ME unrest is more about oil stipends to the people and much less about the people wanting democracy. Signs of the conventional oil peak. Most people are so dumb downed by the media today, everything needs to be spelled out to them by the president before it becomes obvious to them. Unrest in ME is another sign of the peak. Nuff said.
Arthur on Tue, 16th Jul 2013 3:24 pm
It is simply too early to really judge all the fossil wildcards around… shale, nano, steam, other new technologies… methane hydrates… It could take years before we get the new situation in the picture as accurate as ASPO was about conventiontional oil in 1999. Let’s hope that the prices remain high so that the evolving renewable energy momentum is not interrupted.
Barry Francis on Tue, 16th Jul 2013 4:27 pm
If the price of oil falls to $50 a barrel, it will not because of increased supply but demand destruction caused by recession.
Airwicky on Tue, 16th Jul 2013 4:43 pm
First off, the guys says multiple times… it’s about our supply going up and that our production is climbing. He says it’s nothing to do with collasping economies.
This is just another load of big oil propaganda meant to steer the people into believing we are downing in this stuff we call fossil fuels. The guy seems slow to me and doesn’t even articulate much on anything and there’s no mention of how long this would even last if it did go down to $50/barrel
Plantagenet on Tue, 16th Jul 2013 4:48 pm
Its funny to see “drill baby drill” actually succeeding in providing more oil.
Looks like Palin was smarter than Obama after all.
Plantagenet on Tue, 16th Jul 2013 5:15 pm
AND “Gulf Oil” isn’t an oil producing company. Gulf was bought out by Chevron in the 80s. The current “Gulf” is owned by Cumberland Farms who bought the naming rights from Chevron—-Gulf today is just the label on their gas station island.
Beery on Tue, 16th Jul 2013 5:15 pm
$50 oil by the end of the year? Yeah, and pigs might fly.
Beery on Tue, 16th Jul 2013 5:19 pm
Michelle Caruso-Cabrera used to be pretty hot back in the 1990s. Now she seems to be turning into the Wicked Witch of the West.
Beery on Tue, 16th Jul 2013 5:20 pm
Unless that’s just someone who looks and sounds kinda like her.
shortonoil on Tue, 16th Jul 2013 6:34 pm
Our model predicts a most probable price for 2014 of $116.08/barrel, with a lower 97.5% CI of $97.18. Since its average deviation from the curve for the last 52 years has been 0.00, stdev. 0.3440, it is reasonable to assume that it is a better estimator of future oil prices than some oil company CEO who probably has a bonus at stake.
The Hill’s Group
GregT on Tue, 16th Jul 2013 7:48 pm
Sarah Palin may very well be smarter than Obama, but that doesn’t take away from the fact that she is a complete ditz.
Arthur on Tue, 16th Jul 2013 9:57 pm
Reading from a teleprompter is a sufficient skill for the gentile ‘commander in chief’ du jour. Any skills beyond that will cause disquiet with his handlers. Being a ‘ditz’ (whatever that may be) is an assett.