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Glut of oil could push gasoline prices back down below $2 a

LA Times -- Energy experts say oil supply is outstripping demand. Eventually suppliers will tire of paying to store all of the surplus oil and flood the market, they predict.

A year after oil hit a record closing price, the commodity's price is way down -- and may fall significantly further as supply continues to dwarf demand.

Downward pressure on oil prices is so great that crude could trade for as little as $20 a barrel by the end of the year -- less than a third of what it traded for this week and an 86% drop from its peak last year, analysts said.

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Submitted Jul 04, 2009 By: tampatim

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kelsielee Champion Author Atlanta Posts:2,581 Points:494,335 Joined:Sep 2008	Message Posted: Jul 5, 2009 8:18:26 AM Ignore kelsielee Report Abuse Fun article to read - and wish that its prediction would come true. I hesitate to believe that yet, though. I agree with the person from Alaron Trading who felt that we need to see what happens in the next few weeks before believing that a price drop is in our future.
Terrapinone Champion Author Baltimore Posts:2,580 Points:988,900 Joined:May 2004	Message Posted: Jul 5, 2009 7:20:34 AM Ignore Terrapinone Report Abuse It's all a guess on what is really going to happen -- I think that prices will rise.
joel27nc Champion Author Raleigh Posts:4,634 Points:713,595 Joined:Mar 2008	Message Posted: Jul 5, 2009 12:27:20 AM Ignore joel27nc Report Abuse Here we have it folks!
alterman156 Champion Author New York Posts:1,605 Points:405,475 Joined:Dec 2008	Message Posted: Jul 4, 2009 8:51:51 PM Ignore alterman156 Report Abuse If oil goes down to $20 per barrel, gasoline might drop to less than $1 per gallon. However, don't waste it by driving around in a big SUV or a late 1960s - mid 1970s gas guzzler.
milespergallon Champion Author Illinois Posts:4,265 Points:922,955 Joined:Feb 2007	Message Posted: Jul 4, 2009 6:47:29 PM Ignore milespergallon Report Abuse This is G O O D news. Still need to CONSERVE even more. Can not let this go unnoticed. WE can not give in until they go down!
GGW Veteran Author Austin Posts:322 Points:560,915 Joined:Dec 2005	Message Posted: Jul 4, 2009 6:38:46 PM Ignore GGW Report Abuse I t would be great to see pump prices below $2.00. Don't hold your breath! If crude prices get too low it will slow if not stop the development of alternative sources of energy and also the exploration and drilling for new supplies.
2granny Champion Author Michigan Posts:3,157 Points:311,455 Joined:Apr 2009	Message Posted: Jul 4, 2009 6:17:51 PM Ignore 2granny Report Abuse I'll believe it when I see it.
the_peddler Champion Author Detroit Posts:1,273 Points:342,800 Joined:Sep 2008	Message Posted: Jul 4, 2009 6:11:25 PM Ignore the_peddler Report Abuse sounds good. wouldn't it be nice if gas prices went down with oil prices.
paulydel Champion Author Delaware Posts:3,487 Points:407,115 Joined:Jan 2008	Message Posted: Jul 4, 2009 6:00:28 PM Ignore paulydel Report Abuse The oil companies are the ones causing self inflation of oil prices to gain false profits.
Pede Champion Author New Jersey Posts:2,209 Points:304,500 Joined:Apr 2007	Message Posted: Jul 4, 2009 6:00:21 PM Ignore Pede Report Abuse Oil Prices back to Where they belong!!!!!!
bosspark All-Star Author Boston Posts:811 Points:288,370 Joined:Aug 2008	Message Posted: Jul 4, 2009 5:58:45 PM Ignore bosspark Report Abuse not a bad thing
JustjoeWI Veteran Author Milwaukee Posts:397 Points:200,055 Joined:Sep 2008	Message Posted: Jul 4, 2009 5:55:10 PM Ignore JustjoeWI Report Abuse I sure do hope so
aarrrt Champion Author San Diego Posts:2,143 Points:544,305 Joined:May 2008	Message Posted: Jul 4, 2009 5:54:21 PM Ignore aarrrt Report Abuse Wouldn't it be nice.
PokerAce Champion Author Baton Rouge Posts:3,966 Points:767,180 Joined:Jan 2008	Message Posted: Jul 4, 2009 5:53:22 PM Ignore PokerAce Report Abuse about freaking time .... they have been manipulating the price like an expert puppetmaster .... can't wait for that oil bubble to burst BIG TIME !!!!!!!
hybridaholic Champion Author Wisconsin Posts:2,429 Points:416,510 Joined:Dec 2008	Message Posted: Jul 4, 2009 5:52:26 PM Ignore hybridaholic Report Abuse They need to get rid of the glut before they can go for $4 a gallon again. They will dump it on the market till they can control the prices once again.
Kato51 Champion Author Atlanta Posts:2,055 Points:1,120,435 Joined:Jul 2005	Message Posted: Jul 4, 2009 5:49:05 PM Ignore Kato51 Report Abuse Lets go for it. I would love to see gas at $1.50 or there about.
Dale Jr. Champion Author Illinois Posts:10,390 Points:2,082,525 Joined:May 2004	Message Posted: Jul 4, 2009 5:48:18 PM Ignore Dale Jr. Report Abuse I hope this happens soon.
DeHavilland Champion Author Toronto Posts:3,214 Points:858,295 Joined:Jun 2007	Message Posted: Jul 4, 2009 5:44:37 PM Ignore DeHavilland Report Abuse Maybe so, but refineries can be shut down to keep the pump price high.
Mr.Dirt Champion Author Albany Posts:4,200 Points:1,663,295 Joined:Mar 2004	Message Posted: Jul 4, 2009 5:44:17 PM Ignore Mr.Dirt Report Abuse if they were not so greedy then it might not drop and go so high all the time
Bonanza Champion Author Boston Posts:5,173 Points:1,400,490 Joined:Jun 2004	Message Posted: Jul 4, 2009 5:43:57 PM Ignore Bonanza Report Abuse I hope it does. We need the relief.
mach1lives Sophomore Author Riverside Posts:183 Points:474,960 Joined:Jun 2006	Message Posted: Jul 4, 2009 5:42:53 PM Ignore mach1lives Report Abuse Sounds good to me, let's see if it actually happens.
hartman All-Star Author Lansing Posts:645 Points:312,010 Joined:Jul 2007	Message Posted: Jul 4, 2009 5:31:54 PM Ignore hartman Report Abuse sounds good but thats what the so called experts are saying so it probably wont happen like they say it will [Edited by: hartman at 7/4/2009 7:32:23 PM EST]
camel1 Champion Author Minnesota Posts:3,070 Points:1,169,295 Joined:Jul 2006	Message Posted: Jul 4, 2009 5:30:46 PM Ignore camel1 Report Abuse Could be nice but it will not happen
mike911 Champion Author Detroit Posts:3,063 Points:1,043,740 Joined:Jan 2007	Message Posted: Jul 4, 2009 5:30:11 PM Ignore mike911 Report Abuse sounds good to me!
mmene Champion Author Houston Posts:1,813 Points:438,670 Joined:May 2008	Message Posted: Jul 4, 2009 5:22:48 PM Ignore mmene Report Abuse That is exactly what they are saying - we will see lower prices. People don't seem to understand that speculators can drive prices higher if they bet right and lower if they bet wrong. Speculators have incorrectly predicted an economic recovery and bet on gas prices are wrong and their incorrect bet will have them taking losses and depressing gas prices. Another casualty of the current inept financial policies, but one that is to our benefit.
MUSTANGSRUS Champion Author Ontario Posts:3,795 Points:822,985 Joined:Sep 2006	Message Posted: Jul 4, 2009 5:14:20 PM Ignore MUSTANGSRUS Report Abuse Cool. But will we see any lower prices?
mustangmcc Rookie Author Orange County Posts:1 Points:4,345 Joined:Apr 2008	Message Posted: Jul 4, 2009 5:04:27 PM Ignore mustangmcc Report Abuse I agree that we'll have to see it first
FordF2502001 Champion Author Mississippi Posts:2,144 Points:491,395 Joined:Sep 2008	Message Posted: Jul 4, 2009 4:12:32 PM Ignore FordF2502001 Report Abuse will have to see it first
ChiefDrake All-Star Author Dallas Posts:567 Points:172,245 Joined:Aug 2008	Message Posted: Jul 4, 2009 3:00:41 PM Ignore ChiefDrake Report Abuse We as Americans deserve this!!!!
Tucker1961 Sophomore Author Seattle Posts:202 Points:21,125 Joined:Jun 2009	Message Posted: Jul 4, 2009 2:03:05 PM Ignore Tucker1961 Report Abuse Good, something is only worth what someone will pay for it today. Not much
RoadKing95 Champion Author San Jose Posts:14,139 Points:2,448,715 Joined:May 2003	Message Posted: Jul 4, 2009 1:46:29 PM Ignore RoadKing95 Report Abuse MalibuGordie has a good point. >>$20 a barrel ould be too low, I think. All exploration would stop, then we'd be sitting ducks for the next "crisis" << We need to continue conserving so that they have to continue storing that oil hoping for a rise. It would be good if we could slowly buy up some of the oil as the prices fall to put into our reserves. Seems to me that with the last administration they would release a little to let the citizens think they were helping us, but then turn around and buy it back at peak prices to help their big oil buddys pad their bank accounts.
hibsaw Champion Author Mississippi Posts:2,284 Points:550,000 Joined:Feb 2008	Message Posted: Jul 4, 2009 1:42:38 PM Ignore hibsaw Report Abuse We need to hit a happy medium somewhere. The last thing we need right now is to stop exploration for oil and natural gas.
RoadKing95 Champion Author San Jose Posts:14,139 Points:2,448,715 Joined:May 2003	Message Posted: Jul 4, 2009 1:37:50 PM Ignore RoadKing95 Report Abuse Seems DVGas has his own agenda.
Woodbankgasguy Champion Author Alabama Posts:2,309 Points:121,960 Joined:Nov 2008	Message Posted: Jul 4, 2009 1:27:07 PM Ignore Woodbankgasguy Report Abuse DVGas in Seattle wrote <The "price is way down" is not correct...it is still high historically.> since April 2007 the USA average gas price has been higher than it is today with the exception of the 6 months Nov 08-May 09. So in 21 of the past 27 months the average price was higher than it is today. The last time that the price on July 4th was lower than today's average is July 4th, 2005.
Minster Champion Author Wichita Posts:2,226 Points:689,065 Joined:Oct 2007	Message Posted: Jul 4, 2009 1:14:15 PM Ignore Minster Report Abuse sounds like a fairy tail. will have to see it to belive it.
MalibuGordie Champion Author California Posts:2,548 Points:468,700 Joined:Sep 2008	Message Posted: Jul 4, 2009 1:02:31 PM Ignore MalibuGordie Report Abuse $20 a barrel ould be too low, I think. All exploration would stop, then we'd be sitting ducks for the next "crisis"
Speedy1W1 All-Star Author Madison Posts:578 Points:150,740 Joined:Mar 2009	Message Posted: Jul 4, 2009 1:02:20 PM Ignore Speedy1W1 Report Abuse WOULDN'T IT BE NICE.
REKEY Champion Author South Carolina Posts:2,775 Points:563,390 Joined:May 2008	Message Posted: Jul 4, 2009 1:01:37 PM Ignore REKEY Report Abuse LIARS! These writers do not know any more than I do about predicting price of gasoline. Besides, you know OPEC will cut demand to keep prices up or Exxon will shutdown a refinery for repairs or a hurricane will hit and a pipeline will be in danger. ETC, ETC, ETC!
mooneagle Champion Author Oklahoma City Posts:2,899 Points:606,090 Joined:Jun 2008	Message Posted: Jul 4, 2009 12:53:42 PM Ignore mooneagle Report Abuse every penny helps the working class
ItisAJeepThing Champion Author Tucson Posts:10,670 Points:1,140,410 Joined:Oct 2006	Message Posted: Jul 4, 2009 12:51:00 PM Ignore ItisAJeepThing Report Abuse Gasoline prices have declined lately.
eagleeye2008 Champion Author Wisconsin Posts:3,099 Points:584,115 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:49:17 PM Ignore eagleeye2008 Report Abuse WHAT IS THE PROPER WAY TO SPELL,,,,,"GREED,GREED,GREED" !!!!
altonb1 Champion Author Pennsylvania Posts:4,114 Points:511,285 Joined:Jul 2005	Message Posted: Jul 4, 2009 12:42:23 PM Ignore altonb1 Report Abuse Oil is in abundance and should have never passed $2/gallon in the 1st place. Everyone saying "at least it isn't $4..." has been brain-washed into accepting inflated gas prices.
roadkillGA Champion Author Georgia Posts:3,377 Points:484,875 Joined:Jun 2008	Message Posted: Jul 4, 2009 12:41:43 PM Ignore roadkillGA Report Abuse Dump OPEC and use our resources!!!!
Trogg Rookie Author Spokane Posts:57 Points:359,890 Joined:Jan 2007	Message Posted: Jul 4, 2009 12:41:26 PM Ignore Trogg Report Abuse And pigs fly too !! The oil companies aren't going to let the prices go down that far. Watch them drop to around 2.50 and then climb back to just under 3.00 a gal.
Retowered Champion Author Colorado Posts:3,377 Points:1,552,560 Joined:May 2004	Message Posted: Jul 4, 2009 12:41:00 PM Ignore Retowered Report Abuse $20. dollars a barrel that would be nice. But the pump price would still be $2.79.9 greed and more GREED.
srchr Champion Author San Jose Posts:1,636 Points:524,760 Joined:Apr 2008	Message Posted: Jul 4, 2009 12:40:46 PM Ignore srchr Report Abuse I thought they said we were going to run out of oil!
skippypa Champion Author Hawaii Posts:2,623 Points:587,015 Joined:Jun 2008	Message Posted: Jul 4, 2009 12:38:49 PM Ignore skippypa Report Abuse That would be nice to see. Keep the prices high and the consumer will conserve more and more leading to a surplus in oil inventories.
micpie Veteran Author Oregon Posts:465 Points:116,965 Joined:Jun 2009	Message Posted: Jul 4, 2009 12:36:06 PM Ignore micpie Report Abuse On the other hand, I am happy where oil/gas prices are today compared to last year at this time. Fuel was around $ 4.25/gallon.
REVLAW Champion Author San Antonio Posts:4,510 Points:857,225 Joined:Jul 2007	Message Posted: Jul 4, 2009 12:34:43 PM Ignore REVLAW Report Abuse Here we have it folks! Let the trumpets sound heralding in "another opinion".
micpie Veteran Author Oregon Posts:465 Points:116,965 Joined:Jun 2009	Message Posted: Jul 4, 2009 12:34:31 PM Ignore micpie Report Abuse This story out of the LA Times is bogus! $ 20/barrel by the end of the year is not possible w/ speculators marking their terrritory w/ buy crude one day and sell it off the next.