Could Oil Fall to $50 per Barrel?

How far can oil fall?
That’s the question many folks have after reading bearish commentary from our colleague Porter Stansberry. Porter notes how new drilling technologies are causing a surge in North American oil production… which will send oil prices plummeting.
To arrive at a rough estimate of how low oil can go, we consult the price action of crude oil over the past three-and-a-half years. As you can see from our chart, crude oil struck a credit crisis low around $35 per barrel in 2009. It then soared to nearly $115 per barrel over the next two years. This uptrend is faltering, however, and oil has declined to $85 per barrel today.
Considering this wide range, surging North American production, and how the global economy is struggling, we look at this chart and say that oil could easily drop to $70 a barrel. Should the global economy falter from its already weak current level, a drop to $50 isn’t out of the question. After all, just a few years ago, it was at that very price.