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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Granger777 Champion Author Pennsylvania Posts:4,282 Points:1,311,160 Joined:Aug 2005	Message Posted: Jul 4, 2009 12:11:46 PM Ignore Granger777 Report Abuse Thank God !!!!
WVPhoenix Champion Author Charleston Posts:6,608 Points:1,011,965 Joined:Jan 2006	Message Posted: Jul 4, 2009 12:09:58 PM Ignore WVPhoenix Report Abuse Buy American on this Fourth of July!
kjuzenas Veteran Author Nebraska Posts:278 Points:72,470 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:07:41 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:1,787 Points:418,125 Joined:Jul 2007	Message Posted: Jul 4, 2009 12:07:40 PM Ignore uglytom Report Abuse Predictions, predictions etc.............
Don1222 Champion Author Michigan Posts:4,542 Points:477,405 Joined:Jul 2008	Message Posted: Jul 4, 2009 12:06:23 PM Ignore Don1222 Report Abuse Never happen, except temporary. We need alternative fuels.
AJKPA Champion Author Pennsylvania Posts:2,271 Points:314,655 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:06:22 PM Ignore AJKPA Report Abuse they deserve it
theduster1 Champion Author Texas Posts:1,411 Points:315,310 Joined:Apr 2008	Message Posted: Jul 4, 2009 12:06:14 PM Ignore theduster1 Report Abuse simple fix for that will be to cut production
AJKPA Champion Author Pennsylvania Posts:2,271 Points:314,655 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:06:05 PM Ignore AJKPA Report Abuse make them suffer like we have
AJKPA Champion Author Pennsylvania Posts:2,271 Points:314,655 Joined:Oct 2008	Message Posted: Jul 4, 2009 12:05:43 PM Ignore AJKPA Report Abuse love it when it backfires on them
papagreg Champion Author Sacramento Posts:1,312 Points:461,300 Joined:Jan 2008	Message Posted: Jul 4, 2009 12:05:05 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:3,713 Points:776,565 Joined:Jul 2007	Message Posted: Jul 4, 2009 11:55:38 AM Ignore NavyEOD Report Abuse I'll wait and see. Sounds good though.
LittleBlueCarNY All-Star Author Albany Posts:757 Points:385,500 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:55:31 AM Ignore LittleBlueCarNY Report Abuse I'm sure they will find a way around that.
jwalkerh Champion Author Louisiana Posts:1,089 Points:313,135 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:52:18 AM 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:1,762 Points:413,790 Joined:Jun 2008	Message Posted: Jul 4, 2009 11:51:55 AM 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 11:51:46 AM 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:3,171 Points:1,830,105 Joined:May 2003	Message Posted: Jul 4, 2009 11:50:25 AM 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:2,679 Points:553,040 Joined:Jan 2008	Message Posted: Jul 4, 2009 11:48:12 AM Ignore pricechecker08 Report Abuse More Speculation ( Hope there right this time.)
C4U Champion Author Salt Lake City Posts:2,790 Points:530,690 Joined:May 2008	Message Posted: Jul 4, 2009 11:41:28 AM 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:2,817 Points:554,110 Joined:Feb 2004	Message Posted: Jul 4, 2009 11:41:15 AM Ignore foxups Report Abuse good that's where it should be
Plebe2001 All-Star Author Philadelphia Posts:863 Points:143,695 Joined:Jul 2008	Message Posted: Jul 4, 2009 11:39:20 AM 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:1,124 Points:196,290 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:38:18 AM Ignore Wonderdaddie Report Abuse Greed will take presidence.
nemoFL Champion Author Florida Posts:2,679 Points:389,655 Joined:Oct 2008	Message Posted: Jul 4, 2009 11:36:30 AM Ignore nemoFL Report Abuse lets hope
Beboper Champion Author Virginia Posts:2,315 Points:898,085 Joined:Oct 2005	Message Posted: Jul 4, 2009 11:33:53 AM Ignore Beboper Report Abuse that story has been around before
repeater1 Champion Author Kansas Posts:2,008 Points:1,116,675 Joined:Oct 2005	Message Posted: Jul 4, 2009 11:32:16 AM 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:1,385 Points:117,560 Joined:Sep 2003	Message Posted: Jul 4, 2009 11:30:39 AM 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 11:29:54 AM Ignore ach Report Abuse Don't hold your breath.
v240 All-Star Author Pennsylvania Posts:531 Points:438,825 Joined:Feb 2007	Message Posted: Jul 4, 2009 11:28:00 AM 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 11:27:28 AM 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:8,688 Points:2,029,250 Joined:May 2001	Message Posted: Jul 4, 2009 11:27:14 AM Ignore letmathe Report Abuse Let's keep the pressure up so that prices go down.
sgonza98 Champion Author San Antonio Posts:3,442 Points:541,605 Joined:Apr 2004	Message Posted: Jul 4, 2009 11:26:36 AM 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:2,757 Points:902,870 Joined:Jan 2006	Message Posted: Jul 4, 2009 11:21:58 AM Ignore esquared Report Abuse Keep those SUVs and monster trucks PARKED!
Skyeja All-Star Author New Hampshire Posts:534 Points:338,825 Joined:Sep 2008	Message Posted: Jul 4, 2009 11:21:18 AM 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:1,473,835 Joined:May 2005	Message Posted: Jul 4, 2009 11:17:07 AM Ignore TwoEyes Report Abuse Looks like conservation, even if partially forced by the high unemployment rate, is working.
bailey1OH Sophomore Author Cleveland Posts:148 Points:230,355 Joined:Jul 2008	Message Posted: Jul 4, 2009 11:14:59 AM Ignore bailey1OH Report Abuse Prices are still falling. Enjoy it while you can.
truckguy115 All-Star Author Orange County Posts:538 Points:74,945 Joined:Apr 2008	Message Posted: Jul 4, 2009 11:14:41 AM 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.
guyincognitoNY Champion Author New York Posts:1,943 Points:395,285 Joined:Sep 2008	Message Posted: Jul 4, 2009 11:12:40 AM Ignore guyincognitoNY Report Abuse not gonna happen people with this admin.
Bagtag All-Star Author Georgia Posts:744 Points:725,635 Joined:May 2006	Message Posted: Jul 4, 2009 11:11:57 AM Ignore Bagtag Report Abuse What say the speculating fools on Wall Street now? "The sky is falling?!"
smoketown Champion Author Cincinnati Posts:1,867 Points:399,065 Joined:Feb 2008	Message Posted: Jul 4, 2009 11:10:56 AM Ignore smoketown Report Abuse LOandBEHOLD
vegaland Champion Author Houston Posts:1,078 Points:238,805 Joined:May 2006	Message Posted: Jul 4, 2009 11:08:16 AM 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 All-Star Author Houston Posts:789 Points:869,320 Joined:May 2006	Message Posted: Jul 4, 2009 11:08:01 AM 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:1,343 Points:411,275 Joined:Mar 2008	Message Posted: Jul 4, 2009 11:02:48 AM Ignore OnEmptyMO Report Abuse We can only wait and see.
gas_too_high Champion Author Columbus Posts:2,534 Points:716,425 Joined:Aug 2005	Message Posted: Jul 4, 2009 11:00:51 AM 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:9,156 Points:1,739,160 Joined:Oct 2003	Message Posted: Jul 4, 2009 10:59:57 AM Ignore Load Report Abuse blah blah blah
Wwagon All-Star Author Michigan Posts:520 Points:124,600 Joined:May 2008	Message Posted: Jul 4, 2009 10:59:22 AM Ignore Wwagon Report Abuse This should be good news, but I'm not sure. Continue to conserve!
DieselDriverNY Rookie Author Rochester Posts:56 Points:51,390 Joined:Aug 2008	Message Posted: Jul 4, 2009 10:58:30 AM Ignore DieselDriverNY Report Abuse This is good news...right?
PaylessKY Champion Author Kentucky Posts:1,430 Points:377,430 Joined:Oct 2008	Message Posted: Jul 4, 2009 10:58:27 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:6,972 Points:1,412,900 Joined:Dec 2004	Message Posted: Jul 4, 2009 10:57:55 AM Ignore ftsgt Report Abuse Would be nice but I doubt it
JunGleJimBo Sophomore Author Orange County Posts:235 Points:84,625 Joined:Jun 2009	Message Posted: Jul 4, 2009 10:55:32 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:1,714 Points:363,170 Joined:Oct 2005	Message Posted: Jul 4, 2009 10:54:22 AM Ignore phurburger Report Abuse duh.
Chazzy12 Champion Author Massachusetts Posts:1,679 Points:305,210 Joined:Dec 2008	Message Posted: Jul 4, 2009 10:53:07 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:3,650 Points:355,310 Joined:Nov 2008	Message Posted: Jul 4, 2009 10:52:56 AM Ignore thirstyauto Report Abuse Oh no!! not lower prices again!!!