December 13, 2012

WTI Crude Oil to $50 by 2014

Why WTI Crude Oil will fall to $50 by 2014. Current WTI price - $86.2.

Per Merrill Lynch WTI crude oil will fall to $50 by 2014 (via CNN).

The reason – crude oil glut due to difficulty of moving Shale Oil to the markets. 
The drop in U.S. oil prices would likely be temporary, caused by the difficulty in moving huge amounts of new oil from places like North Dakota's Bakken shale or Texas' Eagle Ford to market. Already, all the new production has led to a glut of oil in the region.
As a result, oil has been accumulating in Cushing, Okla. -- home to the convergence of several pipelines and dozens of oil storage tankers that acts as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate.
An earlier prediction from EconMatters - WTI Crude Oil to $65 in 2013 – gives the same oil glut reason and more for the falling oil prices.

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