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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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REVLAW Champion Author San Antonio Posts:5,398 Points:1,028,115 Joined:Jul 2007	Message Posted: Jul 4, 2009 2:34:43 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 2:34:31 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 2:30:44 PM Ignore davidel57 Report Abuse dive, dive, dive! thats great by me.
Tru2psu2 Champion Author Winston-Salem Posts:6,688 Points:625,130 Joined:Feb 2004	Message Posted: Jul 4, 2009 2:29:57 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:3,571 Points:553,010 Joined:Feb 2009	Message Posted: Jul 4, 2009 2:27:41 PM Ignore UncleCurt Report Abuse Tru2psu2, Remember India has drivers too.
Tru2psu2 Champion Author Winston-Salem Posts:6,688 Points:625,130 Joined:Feb 2004	Message Posted: Jul 4, 2009 2:26:37 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 2:25:57 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:6,688 Points:625,130 Joined:Feb 2004	Message Posted: Jul 4, 2009 2:25:35 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 2:24:56 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 2:23:15 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 2:22:30 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 2:21:08 PM Ignore DocWyeth Report Abuse bahhhhh
1fulltank Champion Author Buffalo Posts:2,980 Points:575,900 Joined:Nov 2008	Message Posted: Jul 4, 2009 2:20:44 PM Ignore 1fulltank Report Abuse This is true. But not just "...could...", but "...should...".
MikLamb Champion Author Texas Posts:3,038 Points:1,197,190 Joined:Jun 2006	Message Posted: Jul 4, 2009 2:17:11 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:4,293 Points:1,361,465 Joined:Apr 2006	Message Posted: Jul 4, 2009 2:16:12 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 2:15:47 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 2:15:19 PM Ignore Gerg001 Report Abuse Anything to keep prices low.
balljars Champion Author Michigan Posts:3,628 Points:720,300 Joined:Aug 2008	Message Posted: Jul 4, 2009 2:13:55 PM Ignore balljars Report Abuse I hope it does. We need the relief.
DellDude2 Champion Author Nashville Posts:3,974 Points:1,147,710 Joined:Aug 2005	Message Posted: Jul 4, 2009 2:13:13 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 2:11:57 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 2:08:13 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 2:07:37 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 2:01:02 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:3,199 Points:840,120 Joined:Nov 2006	Message Posted: Jul 4, 2009 1:58:03 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:400,310 Joined:Jul 2008	Message Posted: Jul 4, 2009 1:53:00 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 1:50:07 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:3,794 Points:997,875 Joined:Apr 2006	Message Posted: Jul 4, 2009 1:49:53 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 1:49:16 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 1:48:52 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 1:48:38 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:233 Points:413,185 Joined:May 2008	Message Posted: Jul 4, 2009 1:46:09 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 1:45:56 PM Ignore Daphne2001 Report Abuse OK I would like to see the price stabilize at a little lower price.
AuburnTim Champion Author Indiana Posts:3,497 Points:817,500 Joined:May 2005	Message Posted: Jul 4, 2009 1:45:20 PM Ignore AuburnTim Report Abuse If it happens NO BAIL OUT FOR BIG OIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
outridin Champion Author Illinois Posts:10,329 Points:2,072,835 Joined:Jan 2004	Message Posted: Jul 4, 2009 1:44:11 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:4,246 Points:1,791,140 Joined:Oct 2004	Message Posted: Jul 4, 2009 1:42:56 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:709,965 Joined:Apr 2007	Message Posted: Jul 4, 2009 1:42:44 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 1:42:38 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 1:37:41 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 1:36:39 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:3,416 Points:730,370 Joined:Jul 2008	Message Posted: Jul 4, 2009 1:35:27 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 1:33:31 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 1:30:15 PM Ignore JohnBoy53 Report Abuse If only.....
ledoy Champion Author Dayton Posts:8,070 Points:1,595,875 Joined:Aug 2005	Message Posted: Jul 4, 2009 1:28:42 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 1:28:01 PM Ignore ScrewArnold Report Abuse Damm Speculators cause all this BS
matman01 Champion Author Detroit Posts:9,154 Points:1,009,420 Joined:May 2007	Message Posted: Jul 4, 2009 1:27:44 PM Ignore matman01 Report Abuse Where are the "experts" that predicted $5 a gallon this year?
car253 Champion Author Ohio Posts:2,002 Points:543,875 Joined:Oct 2008	Message Posted: Jul 4, 2009 1:26:22 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 1:24:17 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 1:23:23 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 1:18:32 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 1:13:53 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 1:11:46 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 1:09:58 PM Ignore WVPhoenix Report Abuse Buy American on this Fourth of July!