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Saturday, December 6, 2008

Gulf Oil CEO Predicts $1 Gas, $20 Oil in Early 2009

PITTSBURGH TRIBUNE-REVIEW -- Gasoline prices may fall to $1 a gallon by early next year, Gulf Oil CEO Joe Petrowski said this week. Oil prices, which rose to a record $147.27 a barrel in July, were driven up by speculators (MP: according to Petrowski), and "there is a chance the market will overshoot on the way back down," resulting in much lower prices at the pump, Petrowski said during a talk in Newton, Mass.

Petrowski said that oil, which settled at $43.67 a barrel today, may fall to $20 a barrel. Average gasoline prices nationwide slipped under $1.80 a gallon yesterday, a four-year low. Just four months ago, crude oil prices shot close to $150, and the average, per-gallon cost to consumers was more than $4. Crude has fallen nearly $27 in one month.

Petrowski correctly predicted on Oct. 14, 2007, that oil, then trading at $83.69 a barrel, would rise to $100 within six months.

Update (anonymous comment): "Soon, we'll be seeing the CEOs of the oil companies lining up for their bailouts, too."

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