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GasBuddy News Article

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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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Author Topic: Glut of oil could push gasoline prices back down below $2 a Post a Reply Back to Topics
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Champion Author San Antonio

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Message Posted: Jul 4, 2009 1:34:43 PM

Here we have it folks! Let the trumpets sound heralding in "another opinion".
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Veteran Author Oregon

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Message Posted: Jul 4, 2009 1:34:31 PM

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.
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All-Star Author Houston

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Message Posted: Jul 4, 2009 1:30:44 PM

dive, dive, dive! thats great by me.
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Champion Author Winston-Salem

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Message Posted: Jul 4, 2009 1:29:57 PM

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..
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Champion Author Winnipeg

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Message Posted: Jul 4, 2009 1:27:41 PM

Tru2psu2, Remember India has drivers too.
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Champion Author Winston-Salem

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Message Posted: Jul 4, 2009 1:26:37 PM

Eventually....and I mean EVENTUALLY...our economy will pick up and that for sure will make prices skyrocket...
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Champion Author Denver

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Message Posted: Jul 4, 2009 1:25:57 PM

But then come the speculators... otherwise known as traitors.

[Edited by: MustangKen at 7/4/2009 2:26:08 PM EST]
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Champion Author Winston-Salem

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Message Posted: Jul 4, 2009 1:25:35 PM

Even if prices should drop, China will suck it up and that will make them rise...
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Champion Author Texas

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Message Posted: Jul 4, 2009 1:24:56 PM

Keep the supply outpacing demand. Has to eventually decrease prices.
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Champion Author Texas

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Message Posted: Jul 4, 2009 1:23:15 PM

I'll believe it when I see it.
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Veteran Author Illinois

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Message Posted: Jul 4, 2009 1:22:30 PM

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.
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Champion Author Pennsylvania

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Message Posted: Jul 4, 2009 1:21:08 PM

bahhhhh
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Champion Author Buffalo

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Message Posted: Jul 4, 2009 1:20:44 PM

This is true. But not just "...could...", but "...should...".
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Champion Author Texas

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Message Posted: Jul 4, 2009 1:17:11 PM

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.
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Champion Author Las Vegas

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Message Posted: Jul 4, 2009 1:16:12 PM

Wouldn't that nice ?
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All-Star Author Winnipeg

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Message Posted: Jul 4, 2009 1:15:47 PM

didnt see any down, atleast the price is stable now
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Champion Author San Bernardino

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Message Posted: Jul 4, 2009 1:15:19 PM

Anything to keep prices low.
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Champion Author Michigan

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Message Posted: Jul 4, 2009 1:13:55 PM

I hope it does. We need the relief.
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Champion Author Nashville

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Message Posted: Jul 4, 2009 1:13:13 PM

This is the first holiday weekend I can remember when they didn't jack up the prices. Awesome!
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Champion Author Amarillo

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Message Posted: Jul 4, 2009 1:11:57 PM

That'll be the day.
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Champion Author St. Louis

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Message Posted: Jul 4, 2009 1:08:13 PM

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.
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Veteran Author Georgia

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Message Posted: Jul 4, 2009 1:07:37 PM

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.
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Champion Author San Jose

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Message Posted: Jul 4, 2009 1:01:02 PM

Good. Let the speculators burn like the consumers have been for the past few years.
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Champion Author Indiana

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Message Posted: Jul 4, 2009 12:58:03 PM

All business is about profit. Let's keep profits in the US and not send them to OPEC.
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Rookie Author Florida

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Message Posted: Jul 4, 2009 12:53:00 PM

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.
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Sophomore Author Cincinnati

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Message Posted: Jul 4, 2009 12:50:07 PM

If it drops and stabilizes, it could jump back up when everybody starts driving for BS reasons....
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Champion Author Seattle

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Message Posted: Jul 4, 2009 12:49:53 PM

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.
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Champion Author Salt Lake City

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Message Posted: Jul 4, 2009 12:49:16 PM

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?
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Champion Author Colorado Springs

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Message Posted: Jul 4, 2009 12:48:52 PM

drill here drill now!
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Champion Author Houston

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Message Posted: Jul 4, 2009 12:48:38 PM

OK, now here's a new take. I'll believe it when I see it.
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Sophomore Author Seattle

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Message Posted: Jul 4, 2009 12:46:09 PM

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!
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Rookie Author Virginia

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Message Posted: Jul 4, 2009 12:45:56 PM

OK I would like to see the price stabilize at a little lower price.
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Champion Author Indiana

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Message Posted: Jul 4, 2009 12:45:20 PM

If it happens NO BAIL OUT FOR BIG OIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Champion Author Illinois

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Message Posted: Jul 4, 2009 12:44:11 PM

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
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Champion Author San Bernardino

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Message Posted: Jul 4, 2009 12:42:56 PM

IF THAT IS TRUE, THEN BEFORE IF FALLS MORE THEY SHOULD GET RID OF THE EXCESS NOW.
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Veteran Author Washington

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Message Posted: Jul 4, 2009 12:42:44 PM

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.
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Rookie Author San Bernardino

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Message Posted: Jul 4, 2009 12:42:38 PM

$20 a barrel? That'd be nice, but I'll believe it when I see it.
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Rookie Author Illinois

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Message Posted: Jul 4, 2009 12:37:41 PM

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.
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Champion Author Los Angeles

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Message Posted: Jul 4, 2009 12:36:39 PM

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.
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Champion Author Kansas

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Message Posted: Jul 4, 2009 12:35:27 PM

Do you really think so? I would not bet on it and neither will the speculators.
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Champion Author Illinois

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Message Posted: Jul 4, 2009 12:33:31 PM

One can hope...
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Champion Author Georgia

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Message Posted: Jul 4, 2009 12:30:15 PM

If only.....
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Champion Author Dayton

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Message Posted: Jul 4, 2009 12:28:42 PM

WISHFUL THINKING, but don't hold your breath
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Veteran Author California

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Message Posted: Jul 4, 2009 12:28:01 PM

Damm Speculators cause all this BS
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Champion Author Detroit

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Message Posted: Jul 4, 2009 12:27:44 PM

Where are the "experts" that predicted $5 a gallon this year?
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All-Star Author Ohio

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Message Posted: Jul 4, 2009 12:26:22 PM

Lets go for $1.89.
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Champion Author Buffalo

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Message Posted: Jul 4, 2009 12:24:17 PM

will not happen.
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Veteran Author Pennsylvania

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Message Posted: Jul 4, 2009 12:23:23 PM

Its never going to happen as long as spectulators are out there.
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All-Star Author San Jose

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Message Posted: Jul 4, 2009 12:18:32 PM

Prices should have never gone above $2.00
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Rookie Author Ventura

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Message Posted: Jul 4, 2009 12:13:53 PM

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!
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Champion Author Pennsylvania

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Message Posted: Jul 4, 2009 12:11:46 PM

Thank God !!!!
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Message Posted: Jul 4, 2009 12:09:58 PM

Buy American on this Fourth of July!
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