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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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REPLIES (newest first)
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Granger777
Champion Author Pennsylvania

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

Thank God !!!!
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WVPhoenix
Champion Author Charleston

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Message Posted: Jul 4, 2009 12:09:58 PM

Buy American on this Fourth of July!
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kjuzenas
Veteran Author Nebraska

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Points:74,645
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Message Posted: Jul 4, 2009 12:07:41 PM

It's welcome, even if it's temporary! But I agree, Don1222, alternative energy sources are the only way to make it permanent.
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uglytom
Champion Author Florida

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Message Posted: Jul 4, 2009 12:07:40 PM

Predictions, predictions etc.............
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Don1222
Champion Author Michigan

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Message Posted: Jul 4, 2009 12:06:23 PM

Never happen, except temporary. We need alternative fuels.
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AJKPA
Champion Author Pennsylvania

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Message Posted: Jul 4, 2009 12:06:22 PM

they deserve it
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theduster1
Champion Author Texas

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Message Posted: Jul 4, 2009 12:06:14 PM

simple fix for that will be to cut production
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AJKPA
Champion Author Pennsylvania

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Message Posted: Jul 4, 2009 12:06:05 PM

make them suffer like we have
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AJKPA
Champion Author Pennsylvania

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Message Posted: Jul 4, 2009 12:05:43 PM

love it when it backfires on them
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papagreg
Champion Author Sacramento

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Message Posted: Jul 4, 2009 12:05:05 PM

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.
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NavyEOD
Champion Author Los Angeles

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Message Posted: Jul 4, 2009 11:55:38 AM

I'll wait and see. Sounds good though.
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LittleBlueCarNY
Champion Author Albany

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Message Posted: Jul 4, 2009 11:55:31 AM

I'm sure they will find a way around that.
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jwalkerh
Champion Author Louisiana

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Message Posted: Jul 4, 2009 11:52:18 AM

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.
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travelzonecente
Champion Author Riverside

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Message Posted: Jul 4, 2009 11:51:55 AM

Price is staying steady right now... will see what Monday brings. $2.84 right now at theARCO Travel Zone Center
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purvismike
Champion Author Wisconsin

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Message Posted: Jul 4, 2009 11:51:46 AM

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..........
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HawaiianGuy
Champion Author Idaho

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Message Posted: Jul 4, 2009 11:50:25 AM

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.
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pricechecker08
Champion Author Ohio

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Message Posted: Jul 4, 2009 11:48:12 AM

More Speculation ( Hope there right this time.)
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C4U
Champion Author Salt Lake City

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Message Posted: Jul 4, 2009 11:41:28 AM

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.
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foxups
Champion Author Toledo

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Message Posted: Jul 4, 2009 11:41:15 AM

good that's where it should be
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Plebe2001
Champion Author Philadelphia

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Message Posted: Jul 4, 2009 11:39:20 AM

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.
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Wonderdaddie
Champion Author Alabama

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Message Posted: Jul 4, 2009 11:38:18 AM

Greed will take presidence.
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Beboper
Champion Author Virginia

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Message Posted: Jul 4, 2009 11:33:53 AM

that story has been around before
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repeater1
Champion Author Kansas

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Message Posted: Jul 4, 2009 11:32:16 AM

Let's hope some calamity doesn't occur that will cause the prices to go back up. Slightly pessimistic I am.
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sduyck
Champion Author Oregon

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Message Posted: Jul 4, 2009 11:30:39 AM



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
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ach
All-Star Author Illinois

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Message Posted: Jul 4, 2009 11:29:54 AM

Don't hold your breath.
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v240
All-Star Author Pennsylvania

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Message Posted: Jul 4, 2009 11:28:00 AM

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 !!
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finch2dancandy
Rookie Author Georgia

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Message Posted: Jul 4, 2009 11:27:28 AM

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.
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letmathe
Champion Author Chicago

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Message Posted: Jul 4, 2009 11:27:14 AM

Let's keep the pressure up so that prices go down.
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sgonza98
Champion Author San Antonio

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Message Posted: Jul 4, 2009 11:26:36 AM

Downward pressure of bad economy versus upward pressure of speculator greed. This could get interesting.
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esquared
Champion Author Oklahoma City

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Message Posted: Jul 4, 2009 11:21:58 AM

Keep those SUVs and monster trucks PARKED!
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Skyeja
All-Star Author New Hampshire

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Message Posted: Jul 4, 2009 11:21:18 AM

We can only hope. But hard to be that optimistic with speculators hanging on the edge with baited breath.
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TwoEyes
Champion Author New Haven

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Message Posted: Jul 4, 2009 11:17:07 AM

Looks like conservation, even if partially forced by the high unemployment rate, is working.
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bailey1OH
Sophomore Author Cleveland

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Message Posted: Jul 4, 2009 11:14:59 AM

Prices are still falling. Enjoy it while you can.
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truckguy115
All-Star Author Orange County

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Message Posted: Jul 4, 2009 11:14:41 AM

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.
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Bagtag
All-Star Author Georgia

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Message Posted: Jul 4, 2009 11:11:57 AM

What say the speculating fools on Wall Street now?
"The sky is falling?!"
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smoketown
Champion Author Cincinnati

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Message Posted: Jul 4, 2009 11:10:56 AM

LOandBEHOLD
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vegaland
Champion Author Houston

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Message Posted: Jul 4, 2009 11:08:16 AM

The phamtom demand of all that oil going into storage is going away as they run out of storage space.
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remay
Champion Author Houston

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Message Posted: Jul 4, 2009 11:08:01 AM

"...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?
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OnEmptyMO
Champion Author St. Louis

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Message Posted: Jul 4, 2009 11:02:48 AM

We can only wait and see.
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gas_too_high
Champion Author Columbus

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Message Posted: Jul 4, 2009 11:00:51 AM

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.
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Load
Champion Author Wyoming

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Message Posted: Jul 4, 2009 10:59:57 AM

blah blah blah
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Wwagon
All-Star Author Michigan

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Message Posted: Jul 4, 2009 10:59:22 AM

This should be good news, but I'm not sure. Continue to conserve!
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DieselDriverNY
Rookie Author Rochester

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Message Posted: Jul 4, 2009 10:58:30 AM

This is good news...right?
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PaylessKY
Champion Author Kentucky

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Message Posted: Jul 4, 2009 10:58:27 AM

After they flood the market, bringing down the stored oil supply, then what will happen?
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ftsgt
Champion Author Illinois

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Message Posted: Jul 4, 2009 10:57:55 AM

Would be nice but I doubt it
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JunGleJimBo
Veteran Author Orange County

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Message Posted: Jul 4, 2009 10:55:32 AM

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!
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phurburger
Champion Author Atlanta

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Message Posted: Jul 4, 2009 10:54:22 AM

duh.
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Chazzy12
Champion Author Massachusetts

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Message Posted: Jul 4, 2009 10:53:07 AM

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.
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thirstyauto
Champion Author Milwaukee

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Message Posted: Jul 4, 2009 10:52:56 AM

Oh no!! not lower prices again!!!
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