GasBuddy News Article

votes

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.

Read the Full Article

Submitted Jul 04, 2009 By: tampatim

Back To News

Category: Daily News Article Discussions > Topics	Add to favorite topics Post New Topic

Author	Topic: Glut of oil could push gasoline prices back down below $2 a	Topic is locked Back to Topics

REPLIES (newest first)

First Prev

Next Last

REVLAW Champion Author San Antonio Posts:5,403 Points:1,029,090 Joined:Jul 2007	Message Posted: Jul 4, 2009 1:34:43 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 1:34:31 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.
davidel57 Champion Author Houston Posts:2,221 Points:437,465 Joined:Apr 2008	Message Posted: Jul 4, 2009 1:30:44 PM Ignore davidel57 Report Abuse dive, dive, dive! thats great by me.
Tru2psu2 Champion Author Winston-Salem Posts:6,701 Points:626,105 Joined:Feb 2004	Message Posted: Jul 4, 2009 1:29:57 PM Ignore Tru2psu2 Report Abuse UncleCurt: Correct, India will be a force too, I didn't know they had that many cars yet...But they will be right behind China..
UncleCurt Champion Author Winnipeg Posts:3,576 Points:553,985 Joined:Feb 2009	Message Posted: Jul 4, 2009 1:27:41 PM Ignore UncleCurt Report Abuse Tru2psu2, Remember India has drivers too.
Tru2psu2 Champion Author Winston-Salem Posts:6,701 Points:626,105 Joined:Feb 2004	Message Posted: Jul 4, 2009 1:26:37 PM Ignore Tru2psu2 Report Abuse Eventually....and I mean EVENTUALLY...our economy will pick up and that for sure will make prices skyrocket...
MustangKen Champion Author Denver Posts:3,765 Points:631,950 Joined:Apr 2007	Message Posted: Jul 4, 2009 1:25:57 PM Ignore MustangKen Report Abuse But then come the speculators... otherwise known as traitors. [Edited by: MustangKen at 7/4/2009 2:26:08 PM EST]
Tru2psu2 Champion Author Winston-Salem Posts:6,701 Points:626,105 Joined:Feb 2004	Message Posted: Jul 4, 2009 1:25:35 PM Ignore Tru2psu2 Report Abuse Even if prices should drop, China will suck it up and that will make them rise...
coreymore1 Champion Author Texas Posts:9,894 Points:1,179,135 Joined:Sep 2005	Message Posted: Jul 4, 2009 1:24:56 PM Ignore coreymore1 Report Abuse Keep the supply outpacing demand. Has to eventually decrease prices.
coreymore1 Champion Author Texas Posts:9,894 Points:1,179,135 Joined:Sep 2005	Message Posted: Jul 4, 2009 1:23:15 PM Ignore coreymore1 Report Abuse I'll believe it when I see it.
ruc2827 Veteran Author Illinois Posts:330 Points:283,970 Joined:May 2004	Message Posted: Jul 4, 2009 1:22:30 PM Ignore ruc2827 Report Abuse Unfortunately, the price of oil has become disjointed from supply and demand due to unregulated oil trading. Check out www.stopoilspeculationnow.com to write your congressmen.
DocWyeth Champion Author Pennsylvania Posts:12,754 Points:1,144,185 Joined:Aug 2005	Message Posted: Jul 4, 2009 1:21:08 PM Ignore DocWyeth Report Abuse bahhhhh
1fulltank Champion Author Buffalo Posts:2,985 Points:576,875 Joined:Nov 2008	Message Posted: Jul 4, 2009 1:20:44 PM Ignore 1fulltank Report Abuse This is true. But not just "...could...", but "...should...".
MikLamb Champion Author Texas Posts:3,043 Points:1,198,165 Joined:Jun 2006	Message Posted: Jul 4, 2009 1:17:11 PM Ignore MikLamb Report Abuse Don't believe anything the "forecasters" say. 50% of them are right, and 50% of them are wrong. A blind monkey could do as well.
mysub Champion Author Las Vegas Posts:4,298 Points:1,362,440 Joined:Apr 2006	Message Posted: Jul 4, 2009 1:16:12 PM Ignore mysub Report Abuse Wouldn't that nice ?
FISHERW All-Star Author Winnipeg Posts:516 Points:284,215 Joined:Apr 2009	Message Posted: Jul 4, 2009 1:15:47 PM Ignore FISHERW Report Abuse didnt see any down, atleast the price is stable now
Gerg001 Champion Author San Bernardino Posts:2,402 Points:675,620 Joined:Feb 2006	Message Posted: Jul 4, 2009 1:15:19 PM Ignore Gerg001 Report Abuse Anything to keep prices low.
balljars Champion Author Michigan Posts:3,633 Points:721,275 Joined:Aug 2008	Message Posted: Jul 4, 2009 1:13:55 PM Ignore balljars Report Abuse I hope it does. We need the relief.
DellDude2 Champion Author Nashville Posts:3,979 Points:1,148,685 Joined:Aug 2005	Message Posted: Jul 4, 2009 1:13:13 PM Ignore DellDude2 Report Abuse This is the first holiday weekend I can remember when they didn't jack up the prices. Awesome!
Dipstick1 Champion Author Amarillo Posts:5,110 Points:1,471,840 Joined:Jan 2006	Message Posted: Jul 4, 2009 1:11:57 PM Ignore Dipstick1 Report Abuse That'll be the day.
nojsts Champion Author St. Louis Posts:14,043 Points:2,828,980 Joined:May 2002	Message Posted: Jul 4, 2009 1:08:13 PM Ignore nojsts Report Abuse I just read an story that oil could be at $100.00/bbl by the end of the year. Big oil and others will charge what ever they want whenever they want.
BornToulouse Veteran Author Georgia Posts:411 Points:71,315 Joined:Jul 2009	Message Posted: Jul 4, 2009 1:07:37 PM Ignore BornToulouse Report Abuse While I understand supply and demand pricing...it doesn't quite make rational sense to me...yet. I'm missing something. It very well might be the traders...the ing some if not most price fluctuations at the pumps.
dkinsf Champion Author San Jose Posts:2,367 Points:669,085 Joined:Mar 2007	Message Posted: Jul 4, 2009 1:01:02 PM Ignore dkinsf Report Abuse Good. Let the speculators burn like the consumers have been for the past few years.
waynemustang Champion Author Indiana Posts:3,203 Points:840,300 Joined:Nov 2006	Message Posted: Jul 4, 2009 12:58:03 PM Ignore waynemustang Report Abuse All business is about profit. Let's keep profits in the US and not send them to OPEC.
FLNative13 Rookie Author Florida Posts:43 Points:400,435 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:53:00 PM Ignore FLNative13 Report Abuse There is no logical explanation for the rise and fall of oil or gas prices--it's pure manipulation by the ones who profit the most.
hockeydadOH Sophomore Author Cincinnati Posts:201 Points:69,810 Joined:Jun 2009	Message Posted: Jul 4, 2009 12:50:07 PM Ignore hockeydadOH Report Abuse If it drops and stabilizes, it could jump back up when everybody starts driving for BS reasons....
dabuzman Champion Author Seattle Posts:3,799 Points:998,850 Joined:Apr 2006	Message Posted: Jul 4, 2009 12:49:53 PM Ignore dabuzman Report Abuse My self I don't want to see it go that low but $40.00 a barrel is about right. But the price need to stabilize and hold for a few years. This up and down prices are a problem for not one can do projection correctly. They cause over runs on all bids.
djgunrunner Champion Author Salt Lake City Posts:4,799 Points:1,380,665 Joined:Apr 2005	Message Posted: Jul 4, 2009 12:49:16 PM Ignore djgunrunner Report Abuse We need to conserve. This brought the price down a year ago and when we stopped it took the price up. What is so hard about figuring this out?
mandoid Champion Author Colorado Springs Posts:2,886 Points:611,570 Joined:May 2008	Message Posted: Jul 4, 2009 12:48:52 PM Ignore mandoid Report Abuse drill here drill now!
Tnerbeel Champion Author Houston Posts:3,732 Points:773,610 Joined:Mar 2007	Message Posted: Jul 4, 2009 12:48:38 PM Ignore Tnerbeel Report Abuse OK, now here's a new take. I'll believe it when I see it.
DVGas Sophomore Author Seattle Posts:236 Points:413,295 Joined:May 2008	Message Posted: Jul 4, 2009 12:46:09 PM Ignore DVGas Report Abuse STOP comparing to last year! It has no relevance to reality. The "price is way down" is not correct...it is still high historically. "an 86% drop from its peak last year"...so what! again, it has no relevance!
Daphne2001 Rookie Author Virginia Posts:11 Points:1,955 Joined:Jul 2009	Message Posted: Jul 4, 2009 12:45:56 PM Ignore Daphne2001 Report Abuse OK I would like to see the price stabilize at a little lower price.
AuburnTim Champion Author Indiana Posts:3,502 Points:818,475 Joined:May 2005	Message Posted: Jul 4, 2009 12:45:20 PM Ignore AuburnTim Report Abuse If it happens NO BAIL OUT FOR BIG OIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
outridin Champion Author Illinois Posts:10,334 Points:2,073,810 Joined:Jan 2004	Message Posted: Jul 4, 2009 12:44:11 PM Ignore outridin Report Abuse lower the price of gas and people will return to gas guzzlers and wasted trips. then i will go back up again and we can all complain about greedy oil
TRAIN RIDER Champion Author San Bernardino Posts:4,251 Points:1,792,115 Joined:Oct 2004	Message Posted: Jul 4, 2009 12:42:56 PM Ignore TRAIN RIDER Report Abuse IF THAT IS TRUE, THEN BEFORE IF FALLS MORE THEY SHOULD GET RID OF THE EXCESS NOW.
day49 All-Star Author Washington Posts:932 Points:710,840 Joined:Apr 2007	Message Posted: Jul 4, 2009 12:42:44 PM Ignore day49 Report Abuse I hope this occurs. This would stimulate the economy. Although, that's a double edged sword, in that it will reduce the excess supply of oil. Having lower oil prices, as a secondary benefit, will mean the oil speculators will lose big.
guy_incognito Rookie Author San Bernardino Posts:10 Points:100,100 Joined:May 2009	Message Posted: Jul 4, 2009 12:42:38 PM Ignore guy_incognito Report Abuse $20 a barrel? That'd be nice, but I'll believe it when I see it.
skthompson2468 Rookie Author Illinois Posts:2 Points:2,515 Joined:Jul 2009	Message Posted: Jul 4, 2009 12:37:41 PM Ignore skthompson2468 Report Abuse If that were to happen it would hopefully spur the flagging economy somewhat. The money not going into the tanks will most likely go somewhere else.
tobasco Champion Author Los Angeles Posts:5,609 Points:1,352,725 Joined:Mar 2004	Message Posted: Jul 4, 2009 12:36:39 PM Ignore tobasco Report Abuse This would be cool if it happened. Just like housing prices are about to take a huge dump since there is a glut of foreclosures that the banks can no longer hold on to.
roadrunnerMO Champion Author Kansas Posts:3,421 Points:731,345 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:35:27 PM Ignore roadrunnerMO Report Abuse Do you really think so? I would not bet on it and neither will the speculators.
Rajah Champion Author Illinois Posts:4,686 Points:1,508,745 Joined:Jul 2005	Message Posted: Jul 4, 2009 12:33:31 PM Ignore Rajah Report Abuse One can hope...
JohnBoy53 Champion Author Georgia Posts:6,340 Points:1,330,355 Joined:Oct 2005	Message Posted: Jul 4, 2009 12:30:15 PM Ignore JohnBoy53 Report Abuse If only.....
ledoy Champion Author Dayton Posts:8,075 Points:1,596,100 Joined:Aug 2005	Message Posted: Jul 4, 2009 12:28:42 PM Ignore ledoy Report Abuse WISHFUL THINKING, but don't hold your breath
ScrewArnold Veteran Author California Posts:301 Points:223,790 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:28:01 PM Ignore ScrewArnold Report Abuse Damm Speculators cause all this BS
matman01 Champion Author Detroit Posts:9,161 Points:1,010,395 Joined:May 2007	Message Posted: Jul 4, 2009 12:27:44 PM Ignore matman01 Report Abuse Where are the "experts" that predicted $5 a gallon this year?
car253 Champion Author Ohio Posts:2,002 Points:544,175 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:26:22 PM Ignore car253 Report Abuse Lets go for $1.89.
unicornpmb Champion Author Buffalo Posts:3,517 Points:648,400 Joined:Sep 2005	Message Posted: Jul 4, 2009 12:24:17 PM Ignore unicornpmb Report Abuse will not happen.
adapal Veteran Author Reading Posts:481 Points:222,340 Joined:Dec 2008	Message Posted: Jul 4, 2009 12:23:23 PM Ignore adapal Report Abuse Its never going to happen as long as spectulators are out there.
Jeepmon All-Star Author San Jose Posts:647 Points:635,820 Joined:Jul 2006	Message Posted: Jul 4, 2009 12:18:32 PM Ignore Jeepmon Report Abuse Prices should have never gone above $2.00
Arenay Rookie Author Ventura Posts:3 Points:26,635 Joined:Nov 2008	Message Posted: Jul 4, 2009 12:13:53 PM Ignore Arenay Report Abuse I continue to do my part by driving the extra block or two to purchase gas at the lower rate. I remain optimistic that if we all do the same the added pressure will make the prices drop. We as consumers have the upper hand. After all without demand there is no supply!
Granger777 Champion Author Pennsylvania Posts:5,657 Points:1,589,015 Joined:Aug 2005	Message Posted: Jul 4, 2009 12:11:46 PM Ignore Granger777 Report Abuse Thank God !!!!
WVPhoenix Champion Author Charleston Posts:6,624 Points:1,015,960 Joined:Jan 2006	Message Posted: Jul 4, 2009 12:09:58 PM Ignore WVPhoenix Report Abuse Buy American on this Fourth of July!