Bloomberg: Oil prices could fall $20 or more in a year, a Bloomberg article article Gas prices could drop $20 and more in one year, according to a Bloomberg report, according the Energy Department’s National Energy Board, as the U.S. faces a surge in natural gas demand.
The report said the price drop could be the biggest for more than a decade, as more Americans use gas in their homes to heat their homes and businesses.
The Energy Department also noted the fall in gas prices is expected to be greater than the fall of crude oil, which could be $60 per barrel.
The fall in oil prices has helped lift energy prices.
Bloomberg reported that oil prices could be as low as $30 a barrel by 2021, as demand for energy rises.
The decline in oil costs could have a broader impact on the U,S.
economy, Bloomberg said.
“We expect that the drop in gas price will have an impact on demand and on the economy in the U,” said Robert Cialdini, an economist at Barclays Plc.
Gas prices are expected to rise as the price of crude rises.
Brent crude, which was trading at $51.65 per barrel, has dropped more than $20 per barrel since June 30, to a low of $48.65 on Oct. 28.
Crude oil was trading as low $52.50 a barrel on Thursday.
The drop in oil price will help drive the price up as consumers get used to higher gas prices, Bloomberg added.