Oil prices will fall, but not by much, analyst says

[Algorem]

http://blog.cleveland.com/business/2008/03/oil_prices_will_fall_but_not_b.html

Posted by John Funk March 14, 2008 20:15PM
Categories: Energy
Henry Groppe

• See Groppe's presentation (pdf)

Columbus - Today's inflated oil prices should be gone within a few months, veteran analyst Henry Groppe told Ohio's oil and gas producers today.

But they are not likely to fall back to any level that will make U.S. motorists very happy. The average price of oil will settle to between $70 and $100 a barrel, he said.

The problem is that global oil production from conventional sources has already peaked or will peak this year, Groppe told about 650 people attending the annual conference of the Ohio Oil and Gas Association. In other words, total global production won't get much higher.

In other words, the old pattern of price spikes and collapse are gone. That's good news for producers but a tough reality lesson for consumers, who may have to learn to live with $3 gasoline...