Aug 15, 2015 (LBO) – International crude oil prices could fall as low as 10 or 20 dollars a barrel according to one analyst who sees a continuation of a price war between OPEC and non-OPEC oil producers.
“OPEC is basically saying we’re not going to cut production, we’re going to see who can stand lower prices longest,” Gary Shilling, president of A. Gary Shilling Co., a company into investment advisory services, told Bloomberg TV.
OPEC’s key members have maintained a heavy supply to compete with non-OPEC shale oil producers based mainly in the US. Even though lower prices typically drive these producers out, this time they are staying put, partly due to innovation and lower costs of drilling.
Oil could fall to between 10 and 20 dollars a barrel, according to Shilling. Recently a Goldman Sachs analyst predicted crude oil at 55 dollars in 2020. The future’s price for 2020 is quoted around 62.20 dollars.
On Saturday, Brent crude was quoted at 49.19 dollars. 12 months ago it was quoted at 105 dollars.