powerdesal Posted December 5, 2008 Share Posted December 5, 2008 This is an extract from the FT:-Merrill Lynch warned that oil prices could fall as low as $25 abarrel next year if the recession affecting the US, Europe and Japanextended to China, the main driver of demand growth in commoditymarkets in recent years. Oil prices failed to recapture the $44a barrel mark on Friday, having moved underneath it on Thursday totheir lowest levels in almost four years in spite of dramatic interestrates cuts in the UK, Europe and Sweden.Francisco Blanch, head of commodities research at Merrill Lynch, saidhis main scenario was for oil prices to average $50 a barrel next year,but warned: “A temporary drop below $25 is possible if the globalrecession extends to China.”The article goes but the question is, what long term effect is this going to have on the prices we in Europe pay for petrol / diesel, heating oil etc.When I left France 3 weeks ago the gazole price had dropped from the earlier year high of E1.4? to just over one euro, any guesses where (or if) it will drop to? Link to comment Share on other sites More sharing options...
cooperlola Posted December 5, 2008 Share Posted December 5, 2008 Already below a euro for diesel now, Steve. Link to comment Share on other sites More sharing options...
Frederick Posted December 5, 2008 Share Posted December 5, 2008 Shell I see is giving up on plans for extracting oil from coal in Australia...... now too expensive I suppose ... Link to comment Share on other sites More sharing options...
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