Oil guru Fine was right on gas prices

Discussion in 'Energy' started by bluewill67, Dec 8, 2015.

  1. bluewill67
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    bluewill67 Rookie

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    For the complete article use this link--> Oil guru Fine was right on gas prices | Roswell Daily Record | Roswell Area News
    Energy expert Dr. Daniel Fine, left, in March predicted the current low gasoline prices. Pictured with Fine during a meeting in Roswell in March are local oil men Rory McMinn of Reed & Stevens, center, and Bob Armstrong of Armstrong Energy Corp. (Jeff Tucker Photo)

    An energy expert’s prediction in March that gasoline prices in New Mexico would dip to $1.65 a gallon has been proven true.

    Dr. Daniel Fine, associate director of the New Mexico Center for Energy Policy at New Mexico Institute of Mining and Technology, said at a landmen’s association’s meeting in Roswell in March that gasoline prices in New Mexico would drop to as low as $1.60 a gallon this year as the United States and the Organization of Petroleum Exporting Countries engage in a crude oil price war.
    Gasoline prices in Bernalillo County dipped to $1.64 a gallon this week at some stations, according to GasBuddy.com. Gasoline prices in Chaves County were as low as $1.80 a gallon this week at Sam’s Club in Roswell.

    In March, Fine predicted gasoline prices in the Albuquerque market in 2015 would rise slightly to $2.35 a gallon before leveling off somewhere between $2.35 and $1.65 per gallon. He said in March that gasoline prices in Albuquerque could ultimately drop to as low as $1.60 a gallon.

    “We made it to $1.60 and I have an outline of where we’ll be in 2016,” Fine told the Daily Record this week. “I’m getting calls to return to Roswell to do the next year.”

    Fine said fuel prices in the United States are at their lowest levels since 1998, unadjusted for inflation. Fine attributed the low gasoline prices to soft market demand and excess supplies of crude oil.
    The United States has more crude oil reserves than it has had since 1933, Fine said.

    Fine said he’s not so sure crude oil prices will rise any time soon. He said there is a lot of anticipation about a Dec. 4 meeting of OPEC in Vienna, Austria.

    “There’s a little excitement in the market about what the Saudi Arabian position might be on the 4th,” Fine said. “What’s reported out is some language about stability. So the speculators are buying oil today. But I am very skeptical that this will last.”

    Fine, who has been critical of OPEC, said the oil cartel is creating an imbalance in the marketplace by over-producing while crude prices continue to drop.

    Fine said many economists assumed Saudi Arabia’s state-owned oil producers would cut back production as crude oil prices plummeted, but he said that did no occur.

    “From Thanksgiving (2014) on, we’re in this oil price war crisis,” Fine said.

    Fine said the Saudi Arabian strategy is to continue oil production in hopes production will lower in the United States. However, Fine said New Mexico oil producers produced 119 million barrels of crude oil in 2014.
    “That is a record,” he said. “In 2005, it was about 60 million (barrels). As we produce, we displace Saudi imports.”
     
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    waltky Wise ol' monkey Supporting Member

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