Oil executive Harold Hamm says he expects the price of oil to rise to about $60 by the end of the year as drillers in North Dakota, Texas and elsewhere cut production and whittle down the current glut in the market.
Oil fell to $30 this week, a 12-year low, down 72 percent from $107 in June 2014. Hamm, the CEO of Continental Resources Inc., said in an interview Wednesday that he believes oil is at an inflection point, though he wouldn't say the price has bottomed yet.
Hamm's company helped lead a renaissance in the U.S. oil industry through the use of horizontal drilling to free oil trapped in shale rock.
U.S. oil production rose from 5 million barrels a day in 2008 to nearly 10 million in the early part of last year. Combined with OPEC's decision to keep production at high levels, supply eventually outpaced the growth in demand and prices plummeted.Read the rest of the article by clicking here.
Low oil prices have been a boon to consumers, with average gas prices now below $2. U.S. households saved more than $600 on average at the gas station last year. The Energy Department forecast Tuesday that gasoline would average $2.03 a gallon in the U.S. this year.
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