Oil May Fall to $50 a Barrel in Global Recession, Merrill Lynch Says

1carminestocky

All depends on if we get a full-blown global recession or not, apparently. I know it's all up in the air at the moment, but personally I'm glad I haven't fixed/capped my gas/electricity. Who knows? The energy companies have gone a bit quiet on the 'gas price linked to price of oil' theory just lately :rolleyes: , but if we experienced a prolonged period of $90 a barrel (which is in effect what Merrill actually expect it to do) then surely this would have a downward effect on domestic fuel bills?

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPQbL6d0xPU8&refer=home

Oil May Fall to $50 in Global Recession, Merrill Says

By Angela Macdonald-Smith
Oct. 2 (Bloomberg) -- Crude-oil prices may fall as low as $50 a barrel next year, about half current levels, in the ``unlikely'' event of a global recession, weighing on shares of petroleum producers, Merrill Lynch & Co. said.......

jd87

The days of cheap energy are over and won't ever be coming back. The energy companies only take notice when the wholesale prices go up.

fatlad1971

1carminestocky wrote: »

All depends on if we get a full-blown global recession or not, apparently. I know it's all up in the air at the moment, but personally I'm glad I haven't fixed/capped my gas/electricity. Who knows? The energy companies have gone a bit quiet on the 'gas price linked to price of oil' theory just lately :rolleyes: , but if we experienced a prolonged period of $90 a barrel (which is in effect what Merrill actually expect it to do) then surely this would have a downward effect on domestic fuel bills?

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPQbL6d0xPU8&refer=home

As Ive stated from my first post on here i believe you are right ,

terryya

I think that the fact that the 'premium' on fixed tariffs is a lot lower than in the past suggests that the energy companies are not expecting prices to rise again. Especially now that they charge exit fees I think they're looking to get as many people on fixed deals so even if prices go down they're quids in.

milliemonster

they'll still find justification not to reduce the prices I'm sure