July 5, 2009

WHAT DOES SUPPLY AND DEMAND HAVE TO DO WITH OIL PRICES?:

Glut of oil could push gasoline prices back down below $2 a gallon . (Ronald D. White, July 4, 2009, LA Times)

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.

That could push gasoline prices back down to $2 a gallon, prices last seen this March after last fall's slide slammed retail gasoline to its lowest value in four years.

Posted by Orrin Judd at July 5, 2009 6:03 AM
blog comments powered by Disqus
« THE HARD-BAKED CAKE: | Main | THEIR SMALL SINS AND OUR BIG ONES: »