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If oil drops to $70, what will gas cost?

If oil drops to $70, what will gas cost?

Usually bullish, Goldman Sachs is changing its tune about oil (New York Mercantile Exchange: @CL.1). The widely followed investment bank is now predicting oil prices will fall another $10, ultimately dropping to $70 a barrel in 2015.

Largely, Goldman (GS) believes rising production will outpace demand.


On CNBC's " Closing Bell, " Stephen Schork of the Schork Report said lower oil should have an impact on a wide range of stocks and sectors; he'd be cautious of alternative fuel stocks and constructive on industrials (NYSE Arca: XLI) materials (NYSE Arca: XLB), utilities (NYSE Arca: XLU)and airlines.

(NYSE Arca: .XAL)

Looking at the impact on prices at the pump, Schork added, "If oil drops to $80, it translate to $2.95 per gallon, on average. If oil drops to $75, it means you'll pay $2.80, and if oil goes to $70, drivers are looking at $2.60."

Before, jumping for joy, or jumping in the car for a joy ride, it should be noted, that Goldman's call was met with skepticism.

John Saucer, vice president of research and analysis at Mobius Risk Group in Houston sees oil very differently. "There are signs U.S. crude might be starting to stabilize after falling more than 25 percent since June," he said in a Reuters interview. "Certainly the market can push lower but it's going to need fresh impetus because we have already discounted into this market weak global growth, lower demand, a strong dollar and OPEC and Saudi Arabia's views (on supply)."

Read More Even $70 oil won't slow down U.S. shale growth: Strategist

By the sessions close, U.S. oil prices had rebounded after tumbling to a 28-month low below $80 per barrel.

If crude falls to $70 a barrel next year, as Goldman Sachs is forecasting, it would be the lowest level since 2010. Goldman says it could happen as soon as the second quarter.

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