The days of $100 oil prices may be gone forever.
At least that's what Saudi Prince Alwaleed believes about oil, which plunged below $46 a barrel on Monday for the first time since the spring of 2009.
The well-known billionaire investor recently told USA Today he's positive we're "never" going to see $100-a-barrel oil prices again.
"There's less demand, and there's oversupply. And both are recipes for a crash in oil. And that's what happened. It's a no-brainer," Alwaleed told the paper.
The comments from the prince mirror ones by Ali al-Naimi, the Saudi oil minister who said $100 oil may be a thing of the past in December.
Related: The real story behind Saudi Arabia's oil games
Cheap gas here to stay? If those predictions are accurate, it could also mean gas in the U.S. might not go above $3 again. Thanks to the oil meltdown, the national average price of gas has plunged to $2.13, compared with $3.31 a year ago, according to AAA.
saudi prince oil quote
Back in 2008, oil broke through the $100 level for the first time, leading some to predict prices would spike to $200 due to surging demand from China and India. Then oil plummeted to $34 during the Great Recession before rebounding sharply.
Crude bounced between $90 and $110 over the past three years, trading above $100 as recently as late July. But that's when prices collapsed under the weight of a supply glut caused by North American production, including U.S. shale companies that need higher prices to be profitable.
Related: Big Oil loses $200B from oil crash
Shale is feeling the pain: Alwaleed said one "positive side effect" of the oil crash is it will allow Saudi Arabia to see "how many shale oil production companies run out of business."
Already, U.S. energy companies have dialed back their spending plans, cut dividends and laid off workers. Analysts believe some shale companies won't survive the drop in prices.
Now there are signs shale companies are cutting back on drilling. During the first week of 2015, oil companies reduced horizontal drilling for oil for the first time in the Bakken, Eagle Ford and Permian shale plays, according to Rystad Energy.
"'Rigs that count' have been resilient until now, but now these rigs are also being idled," said Per Magnus Nysveen, head of analysis at Rystad.
Share your story: Do you work in the oil or gas industry?
Now what? Investors continue to guess where oil is going next. After showing signs of stabilization last week, oil tumbled another 4% on Monday to $45.90. Some oil watchers believe prices could plunge as low as $30 due to oversupply and sluggish demand.
Goldman Sachs said on Monday oil may need to trade near $40 a barrel for most of the first half of 2015. That would keep capital on the sidelines and slow down supply growth to rebalance the global oil market, the bank said.
Once oil finds a bottom, Moody's senior economist Chris Lafakis thinks the black stuff could surge all the way back to $80 by the end of the year.
Alwaleed concedes a rebound may happen eventually. He just doesn't think it'll carry oil all the way back to $100.

Source:http://money.cnn.com/2015/01/12/investing/oil-prices-saudi-prince/index.html


Am Sure his comment could crash some stocks around the world..lol

Where were you dug from @op?

TrishaP:
Where were you dug from @op?

@TrishaP, were u in ur cave

ikp4succes:


@TrishaP, were u in ur cave

There's no cave where I'm from. Lol
Ur disappearance got me wondering.

Whatever.

I cry for Nigeria....;(

.

Oh well! Economy diversification it is then.

Warris_this one Drivelling about?

Hmmm with dis will d central (fed govt) still b attractive for prospective criminals eyeing dat sit?

Even if the price drops to $1 per barrel, i'll not be hit because He has promised to sustain me both in Much and in Less.

Thanks to the oil meltdown, the
national average price of gas has plunged
to $2.13, compared with $3.31 a year ago , according to AAA.

It's only in Nigeria where the drop in oil prices has not brought about a corresponding drop in price of Petrol.

No one can rightly predict what will likely happen in the crude oil market..

While the Saudis have saved close to $1Trilion in Reserve, my beloved Country was busy piling off Cash in Private Jets Overseas...now what are we left with? A president advising students and graduates to go into farming! But he failed to provide the means by which these young lads can succeed in the Farm/Agro sector. No Loans, No Support, No Subsidies for things that matter except for the ones that Money disappears in the name of Oil Subsidy...Pity!

But Mehn! Looking at that Fresh Dude, all I see is doughs, Real Doughs! See freshness!

It is conceivable that we will see $35/barrels. The Saudis are very efficient and can survive at this price for a while. Russia is in trouble and they are busy making plans to deal with this low price. Nigeria has no plan except two
1. Let us pray
2. Let the poor fast or starve
How reckless is that.

I really want to believe the Saudi Prince is not God!. However his prediction calls for worry for those country that depend solely on crude oil.

cashmentor:
While the Saudis have saved close to $1Trilion in Reserve, my beloved Country was busy piling off Cash in Private Jets Overseas...now what are we left with? A president advising students and graduates to go into farming! But he failed to provide the means by which these young lads can succeed in the Farm/Agro sector. No Loans, No Support, No Subsidies for things that matter except for the ones that Money disappears in the name of Oil Subsidy...Pity!

You lack a lot upstairs. Complaining about everything! A begging mentality.

saintneo:


You lack a lot upstairs. Complaining about everything! A begging mentality.

Is that not the truth? Nawa for the supporters of this administration oooh, you can't say the truth again without seeing one sycophant who will attack you on TV, radio, newspapers, social media or inside a bus. Did all this sycophants suddenly loss their brain or they are just being mischievous?

Double wahala for Nigeria.

This country is a big joke.

That is why Adesina is doing well in agriculture. Aganga is doing well making us manufacturing and not consuming nation.
Vote JONANTH

seunfly:


Is that not the truth? Nawa for the supporters of this administration oooh, you can't say the truth again without seeing one sycophant who will attack you on TV, radio, newspapers, social media or inside a bus. Did all this sycophants suddenly loss their brain or they are just being mischievous?

No loans, no subsidies?

I am not a Jonathanian/TANoid/GEJite, but I dislike lies. Have you researched on loans via the CBN and other agencies? Are you aware the electricity bills in Nigeria a subsidized?

I know it can be challenging securing a loan but denying its existence is falsification of facts. Subsidy is good but when people start depending on subsidy then the nation is in trouble. Petroleum subsidy brought about ROUNDTRIPPING in the sector, Electricity subsidy crippled NEPA/PHCN.

I will not standby and watch a non-ideological person lead this nation without speaking my mind. We need leaders with plans not harry-potters.

saintneo:


No loans, no subsidies?

I am not a Jonathanian/TANoid/GEJite, but I dislike lies. Have you researched on loans via the CBN and other agencies? Are you aware the electricity bills in Nigeria a subsidized?

I know it can be challenging securing a loan but denying its existence is falsification of facts. Subsidy is good but when people start depending on subsidy then the nation is in trouble. Petroleum subsidy brought about ROUNDTRIPPING in the sector, Electricity subsidy crippled NEPA/PHCN.

I will not standby and watch a non-ideological person lead this nation without speaking my mind. We need leaders with plans not harry-potters.

My brother, I understand you but when ordinary people can't access such loan, what will you call that?
NEPA bill subsidy, of what benefit is NEPA subsidy when I pay at least 10% of my income to NEPA and I don't have up to 5hours a day and it is their friends and cronies that bought the same NEPA.
So when people talk it is not out of hatred or fallacy, it is the reality.

saintneo:


You lack a lot upstairs. Complaining about everything! A begging mentality.

you are bleeped..u called dat a begging mentality. It is our right. Dis is nt begging boy. Very senseless pdp e-rats all u do is to type non sense.

cashmentor:
While the Saudis have saved close to $1Trilion in Reserve, my beloved Country was busy piling off Cash in Private Jets Overseas...now what are we left with? A president advising students and graduates to go into farming! But he failed to provide the means by which these young lads can succeed in the Farm/Agro sector. No Loans, No Support, No Subsidies for things that matter except for the ones that Money disappears in the name of Oil Subsidy...Pity!

Nigeria is already brought to her knees as a result of the looting of the excess earnings from the crude oil. Put GEJ there for another four years and we will need hand-outs from Western nations to survive. By then a dollar will exchange for like 300 naira if not more. Add the fact that we don't refine our own oil, no tangible improvement in electricity plus their already insatiable appetite for looting, we will be a fourth world country.

However, if we do the right thing now by putting Buhari there, he will surely record some success in fighting corruption, security and electricity. After four years, we will review his performance and determine if he needs to continue or be sacked. That is the only way out for Nigeria.

lilprinze:
This country is a big joke.

You are right.

One nigeria is a big joke.

We don't have good leaders.

Anyway sha, the price of oil should go to ten dollars per barrel.

oya nigeria, back to agriculture and technology.

lilprinze:
This country is a big joke.

Your comment has no relationship with the topic.

Oya Buhari over to you, start stabilising the oil price.

espn:
you are bleeped..u called dat a begging mentality. It is our right. Dis is nt begging boy. Very senseless pdp e-rats all u do is to type non sense.

No need replying a rabid dog.

I hope it goes down to $2 sef.. so that Nigerians will start facing reality and do the needful.