On news that the price of gasoline in the United States falling to a six-year low, a comment from the Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Abdalla Salem el-Badri caused the price of oil to wobble back and forth during the start of the Monday trading session.
According to the OPEC official, a rebound may take place with the price per barrel ranging between $45 and $55. He essentially said what we have been reporting for a long time: U.S. shale producers will diminish their operations and investment levels because it will just be too expensive.
How high will the price of oil go?
“Maybe we will go to $200 if there is a real shortage of supply because of the lack of investment,” said Salem el-Badri, reports the Wall Street Journal. “We will see how the market behaves at the end of the first half of 2015.”
With U.S. gas prices at their lowest level since Apr. 2009, consumers have been enjoying additional money in their pockets. On average, the price for regular grade gas stands at $2.07 per gallon. This will likely not last, though.
At the time of this writing, the price of oil is trading at just over $45 per barrel.
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