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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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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!
kjuzenas Veteran Author Nebraska Posts:278 Points:74,645 Joined:Jul 2008	Message Posted: Jul 4, 2009 1:07:41 PM Ignore kjuzenas Report Abuse It's welcome, even if it's temporary! But I agree, Don1222, alternative energy sources are the only way to make it permanent.
uglytom Champion Author Florida Posts:3,096 Points:678,140 Joined:Jul 2007	Message Posted: Jul 4, 2009 1:07:40 PM Ignore uglytom Report Abuse Predictions, predictions etc.............
Don1222 Champion Author Michigan Posts:6,192 Points:759,980 Joined:Jul 2008	Message Posted: Jul 4, 2009 1:06:23 PM Ignore Don1222 Report Abuse Never happen, except temporary. We need alternative fuels.
AJKPA Champion Author Pennsylvania Posts:3,770 Points:586,105 Joined:Oct 2008	Message Posted: Jul 4, 2009 1:06:22 PM Ignore AJKPA Report Abuse they deserve it
theduster1 Champion Author Texas Posts:1,411 Points:318,490 Joined:Apr 2008	Message Posted: Jul 4, 2009 1:06:14 PM Ignore theduster1 Report Abuse simple fix for that will be to cut production
AJKPA Champion Author Pennsylvania Posts:3,770 Points:586,105 Joined:Oct 2008	Message Posted: Jul 4, 2009 1:06:05 PM Ignore AJKPA Report Abuse make them suffer like we have
AJKPA Champion Author Pennsylvania Posts:3,770 Points:586,105 Joined:Oct 2008	Message Posted: Jul 4, 2009 1:05:43 PM Ignore AJKPA Report Abuse love it when it backfires on them
papagreg Champion Author Sacramento Posts:1,527 Points:512,700 Joined:Jan 2008	Message Posted: Jul 4, 2009 1:05:05 PM Ignore papagreg Report Abuse I've been saying for months that it HAS TO BE COSTLY to keep storing all that unused crude in those dozens of tankers. We can only hope that prices return to where they belong and all those speculators lose everything they own.
NavyEOD Champion Author Los Angeles Posts:5,134 Points:1,057,565 Joined:Jul 2007	Message Posted: Jul 4, 2009 12:55:38 PM Ignore NavyEOD Report Abuse I'll wait and see. Sounds good though.
LittleBlueCarNY Champion Author Albany Posts:1,143 Points:550,800 Joined:Apr 2008	Message Posted: Jul 4, 2009 12:55:31 PM Ignore LittleBlueCarNY Report Abuse I'm sure they will find a way around that.
jwalkerh Champion Author Louisiana Posts:2,092 Points:559,875 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:52:18 PM Ignore jwalkerh Report Abuse That would not surprise me, the recession hasn't even begun to stabilise yet. Businesses are still closing which means unemployment is rising and those already affected by the closures are still unemployeed.
travelzonecente Champion Author Riverside Posts:1,829 Points:455,735 Joined:Jun 2008	Message Posted: Jul 4, 2009 12:51:55 PM Ignore travelzonecente Report Abuse Price is staying steady right now... will see what Monday brings. $2.84 right now at theARCO Travel Zone Center
purvismike Champion Author Wisconsin Posts:1,495 Points:301,910 Joined:Feb 2008	Message Posted: Jul 4, 2009 12:51:46 PM Ignore purvismike Report Abuse What a bunch of BS when people think CONSERVATION is working! What Conservation? The biggest reason theres an Oil Glut is theres more Tanker Storage than theres ever been.Plus the fact Unemployment stands at 9.6%.And alot of Countries are buiding more inland tank storage such as China. If ya'all think theres a majority of the population Conserving enough to make a difference well..........
HawaiianGuy Champion Author Idaho Posts:4,581 Points:2,108,445 Joined:May 2003	Message Posted: Jul 4, 2009 12:50:25 PM Ignore HawaiianGuy Report Abuse Everybody and his brother seems to have their own crystal ball predicting their own version of what energy prices will do. These are basically non-stories.
pricechecker08 Champion Author Ohio Posts:4,087 Points:833,365 Joined:Jan 2008	Message Posted: Jul 4, 2009 12:48:12 PM Ignore pricechecker08 Report Abuse More Speculation ( Hope there right this time.)
C4U Champion Author Salt Lake City Posts:4,255 Points:814,595 Joined:May 2008	Message Posted: Jul 4, 2009 12:41:28 PM Ignore C4U Report Abuse Not here its continually increased steadily since Easter.... Conservation is the best thing we can do. We still need to implement a fast track to alternative fuels and energy to be come energy independent from foreign support, big oil companies and local utilities monopoly.
foxups Champion Author Toledo Posts:3,252 Points:645,060 Joined:Feb 2004	Message Posted: Jul 4, 2009 12:41:15 PM Ignore foxups Report Abuse good that's where it should be
Plebe2001 Champion Author Philadelphia Posts:2,251 Points:405,925 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:39:20 PM Ignore Plebe2001 Report Abuse The price of gas has been dropping here northwest of Philadelphia, PA. We are down now from 5 to 10 cents per gallon over the past few weeks. But we would liker to see it drop more.
Wonderdaddie Champion Author Alabama Posts:1,125 Points:197,360 Joined:Apr 2008	Message Posted: Jul 4, 2009 12:38:18 PM Ignore Wonderdaddie Report Abuse Greed will take presidence.
Beboper Champion Author Virginia Posts:3,752 Points:1,182,410 Joined:Oct 2005	Message Posted: Jul 4, 2009 12:33:53 PM Ignore Beboper Report Abuse that story has been around before
repeater1 Champion Author Kansas Posts:3,431 Points:1,399,370 Joined:Oct 2005	Message Posted: Jul 4, 2009 12:32:16 PM Ignore repeater1 Report Abuse Let's hope some calamity doesn't occur that will cause the prices to go back up. Slightly pessimistic I am.
sduyck Champion Author Oregon Posts:1,459 Points:124,965 Joined:Sep 2003	Message Posted: Jul 4, 2009 12:30:39 PM Ignore sduyck Report Abuse break the speculators bank accounts and mr obama ...dont bail them out this time..let them drown of their own greed walk dont drive this summer
ach All-Star Author Illinois Posts:654 Points:331,125 Joined:Jun 2008	Message Posted: Jul 4, 2009 12:29:54 PM Ignore ach Report Abuse Don't hold your breath.
v240 All-Star Author Pennsylvania Posts:687 Points:656,645 Joined:Feb 2007	Message Posted: Jul 4, 2009 12:28:00 PM Ignore v240 Report Abuse With no demand, the speculators who have stocked up will take a bath in their oil. Let's keep demand low by conserving, and help that happen !!
finch2dancandy Rookie Author Georgia Posts:71 Points:10,760 Joined:Jul 2009	Message Posted: Jul 4, 2009 12:27:28 PM Ignore finch2dancandy Report Abuse First they were spilling oil now they say we have a surplus. Scary, but I hope prices do go down more then they have been.
letmathe Champion Author Chicago Posts:9,997 Points:2,281,615 Joined:May 2001	Message Posted: Jul 4, 2009 12:27:14 PM Ignore letmathe Report Abuse Let's keep the pressure up so that prices go down.
sgonza98 Champion Author San Antonio Posts:3,502 Points:556,405 Joined:Apr 2004	Message Posted: Jul 4, 2009 12:26:36 PM Ignore sgonza98 Report Abuse Downward pressure of bad economy versus upward pressure of speculator greed. This could get interesting.
esquared Champion Author Oklahoma City Posts:3,922 Points:1,140,955 Joined:Jan 2006	Message Posted: Jul 4, 2009 12:21:58 PM Ignore esquared Report Abuse Keep those SUVs and monster trucks PARKED!
Skyeja All-Star Author New Hampshire Posts:559 Points:458,525 Joined:Sep 2008	Message Posted: Jul 4, 2009 12:21:18 PM Ignore Skyeja Report Abuse We can only hope. But hard to be that optimistic with speculators hanging on the edge with baited breath.
TwoEyes Champion Author New Haven Posts:1,683 Points:1,725,310 Joined:May 2005	Message Posted: Jul 4, 2009 12:17:07 PM Ignore TwoEyes Report Abuse Looks like conservation, even if partially forced by the high unemployment rate, is working.
bailey1OH Sophomore Author Cleveland Posts:157 Points:269,235 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:14:59 PM Ignore bailey1OH Report Abuse Prices are still falling. Enjoy it while you can.
truckguy115 All-Star Author Orange County Posts:855 Points:141,695 Joined:Apr 2008	Message Posted: Jul 4, 2009 12:14:41 PM Ignore truckguy115 Report Abuse supply and demand only works if demand outweighs supply. what are seeing today is the opposite. too much supply and low demand and 67 dollar oil. what BS.
Bagtag All-Star Author Georgia Posts:924 Points:964,260 Joined:May 2006	Message Posted: Jul 4, 2009 12:11:57 PM Ignore Bagtag Report Abuse What say the speculating fools on Wall Street now? "The sky is falling?!"
smoketown Champion Author Cincinnati Posts:2,880 Points:597,260 Joined:Feb 2008	Message Posted: Jul 4, 2009 12:10:56 PM Ignore smoketown Report Abuse LOandBEHOLD
vegaland Champion Author Houston Posts:2,403 Points:501,795 Joined:May 2006	Message Posted: Jul 4, 2009 12:08:16 PM Ignore vegaland Report Abuse The phamtom demand of all that oil going into storage is going away as they run out of storage space.
remay Champion Author Houston Posts:2,217 Points:1,152,940 Joined:May 2006	Message Posted: Jul 4, 2009 12:08:01 PM Ignore remay Report Abuse "...The still-sputtering economy has lessened demand at a time when there is already a big surplus of oil...." so what - it hasn't stopped the traders/speculators from artificially causing the price to go up before, so why should it be any different now?
OnEmptyMO Champion Author St. Louis Posts:1,950 Points:626,125 Joined:Mar 2008	Message Posted: Jul 4, 2009 12:02:48 PM Ignore OnEmptyMO Report Abuse We can only wait and see.
gas_too_high Champion Author Columbus Posts:4,349 Points:990,400 Joined:Aug 2005	Message Posted: Jul 4, 2009 12:00:51 PM Ignore gas_too_high Report Abuse Those poor, poor, dictators. Poor Hugo "I hate US" Chavez. Poor, poor, "mad nut job" who just stole an election in Iran so he can build his Bomb. They won't be getting as much money. My heart bleeds for them.
Load Champion Author Wyoming Posts:10,610 Points:2,012,880 Joined:Oct 2003	Message Posted: Jul 4, 2009 11:59:57 AM Ignore Load Report Abuse blah blah blah
Wwagon All-Star Author Michigan Posts:786 Points:186,545 Joined:May 2008	Message Posted: Jul 4, 2009 11:59:22 AM Ignore Wwagon Report Abuse This should be good news, but I'm not sure. Continue to conserve!
DieselDriverNY Rookie Author Rochester Posts:62 Points:72,135 Joined:Aug 2008	Message Posted: Jul 4, 2009 11:58:30 AM Ignore DieselDriverNY Report Abuse This is good news...right?
PaylessKY Champion Author Kentucky Posts:3,570 Points:661,355 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:58:27 AM Ignore PaylessKY Report Abuse After they flood the market, bringing down the stored oil supply, then what will happen?
ftsgt Champion Author Illinois Posts:8,398 Points:1,664,635 Joined:Dec 2004	Message Posted: Jul 4, 2009 11:57:55 AM Ignore ftsgt Report Abuse Would be nice but I doubt it
JunGleJimBo Veteran Author Orange County Posts:378 Points:162,135 Joined:Jun 2009	Message Posted: Jul 4, 2009 11:55:32 AM Ignore JunGleJimBo Report Abuse If the price gets below $2.00/ gallon, it won't stay there for long. The oil companies have too much vested in keeping the profit levels high!
phurburger Champion Author Atlanta Posts:2,555 Points:530,670 Joined:Oct 2005	Message Posted: Jul 4, 2009 11:54:22 AM Ignore phurburger Report Abuse duh.
Chazzy12 Champion Author Massachusetts Posts:2,093 Points:428,955 Joined:Dec 2008	Message Posted: Jul 4, 2009 11:53:07 AM Ignore Chazzy12 Report Abuse Reality has to set in at some point. The economy just isn't improving right now in spite of what some European banker might say or Nigerian rebel might do. Pump prices are starting to slide around here.
thirstyauto Champion Author Milwaukee Posts:6,128 Points:639,390 Joined:Nov 2008	Message Posted: Jul 4, 2009 11:52:56 AM Ignore thirstyauto Report Abuse Oh no!! not lower prices again!!!