Exxon CEO: Get Used to Lower Oil Prices

[herding cats]

Source: Associated Press/ABC

Exxon Mobil CEO Rex Tillerson expects the price of oil to remain low over the next two years because of ample global supplies and relatively weak economic growth.

"People need to kinda settle in for a while," Tillerson said at the company's annual investor conference in New York.

In a presentation to investors outlining its business plans through 2017, Exxon assumes a price of $55 a barrel for global crude. That's $5 below where Brent crude, the most important global benchmark, traded on Wednesday. It's about half of what Brent averaged between 2011 and the middle of last year.

The price of oil plunged in the second half of 2014 when it became apparent that production was outpacing global demand. The rise in U.S. production last year of 1.5 million barrels per day was the third largest in the history of the global oil industry, according to a recent report from BP. Meanwhile, weakening economic conditions in China, Japan and Europe slowed the growth in oil demand.

Read more: http://abcnews.go.com/Business/wireStory/exxon-ceo-lower-oil-prices-29383799

[Romeo.lima333]

1. the u.s. will run out of storage space in april

[secondvariety]

3. Be prepared

for the 2016 Mega Gas Guzzlers.

[SCVDem]

4. The price is up a buck

In less than a month.

Define low prices.

BOOM!!! There goes another refinery shooting that theory to hell.

[Stardust]

6. I live in L.A., too, and it's shocking how much the price has increased since the refinery explosion

Do they really expect us to believe that L.A. solely gets its gasoline from one local refinery? Pfft!

[Kip Humphrey]

5. Next month: union strikers are driving up the price of domestic gasoline.