Analyst Looks At Falling Oil Prices
December 2, 2014 — Mike Corbin, Network Indiana — Crude oil prices continue to fall and analysts say that‘s dropping prices at the pumps.
GasBuddy.com analyst Patrick DeHaan says gas prices across Indiana could fall into the $2.40 a gallon range by week‘s end. Right now, gas prices statewide are ranging from $2.61 to $2.80 a gallon. DeHaan cites the massive decline in crude oil prices over Thanksgiving weekend. OPEC met in Vienna last week and decided not to cut production despite big declines in crude oil prices. DeHaan says that‘s causing further price declines amid abundant supply.
Crude oil prices dropped 18% in November. That‘s the biggest drop since October 2008. Since the beginning of the year, crude oil has fallen by 38%. Crude oil is now hovering around $67 a barrel. DeHaan says it could fall to $40 a barrel. He says that could mean that trouble for U.S. oil producers that need higher prices to pay their bills.
DeHaan says $40 a barrel could happen, but isn‘t very likely. Crude oil prices reached $105 a barrel earlier this year.