The collapse in oil prices, now hovering around $45 per barrel in the U.S
Currently national gas prices at the pump average around $2.34 a gallon.
The collapse in oil prices, now hovering around $45 per barrel in the U.S., is terrifying, according to former Shell Oil President John Hofmeister.
“It’s getting to a scary point,” he said during an interview on FOX Business’ Varney & Co. “If we get below $40 we’ll see rapid stopping of drilling because the companies simply can’t afford it.”
- The drop in oil is also a warning sign for the global economy.
- Viable prices, according to Hofmeister, range from $50 to $60 a barrel.
Crude prices sunk to a 17-month low on Friday, down about 24 percent this year, as global oversupply kept buyers away from the market ahead of the holiday break. However, in Hofmeister’s opinion, crude is at its lowest point.
“I hope for the sake of both consumers and the industry that we are at the bottom,” he said.
Crude oil prices could plunge lower
Saudi Arabia has restored half of the crude product that was lost to devastating attacks on its oil industry, and the kingdom said output will be fully restored by the end of this month.
If we don’t see any new drone attackS on Saudi oil infrastructure we could see Crude oil prices going even lower. Before the oil attacks against Saudi oil infrastructure, the Crude oil prices were already heading lower.