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Why Oil Prices Will Keep Falling: Record Pumping

CNBC -- Oil prices, down about 30 percent since March, will likely stay under pressure for now based on record global production and softer demand.

West Texas intermediate (New York Mercantile Exchange: clcv1) was trading higher Friday, bouncing more than a percent off its Thursday close of $78.20 per barrel. Brent (Intercontinental Exchange Europe: LCOCV1), the international benchmark, rose back above $90 per barrel Friday.

Despite the blip, though, analysts see oil headed further down.

The reason? The world is now pumping 91.1 million barrels per day, the most ever. At the same time, global demand in May was 89.9 million barrels per day, the International Energy Administration reported.

OPEC production, at more than 31.5 million barrels in May, was also higher than normal, though OPEC l

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Submitted Jun 23, 2012 By: mastermariner

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GOBUTLER Champion Author Indianapolis Posts:1,425 Points:390,585 Joined:Dec 2011	Message Posted: Jun 24, 2012 8:37:26 PM Ignore GOBUTLER Report Abuse Ok
comprof Champion Author Houston Posts:6,864 Points:1,357,725 Joined:Jul 2009	Message Posted: Jun 24, 2012 8:24:38 AM Ignore comprof Report Abuse Old news
tomok Champion Author Portland Posts:33,047 Points:2,346,485 Joined:Aug 2006	Message Posted: Jun 24, 2012 7:10:16 AM Ignore tomok Report Abuse Prices Will Keep Falling, Record Pumping? That's what she said! What happened to that $5/gallon forecast for summer gasoline? Record global oil production! Less profits for those greedy Speculators, Manipulators and banks, better fuel prices for the consumer. Is the economy getting weaker and it can't stand all the profit taking going on? Is this an election year stunt for 'coming out of the closet' Barry, to ease the pain at the pump? How fast will the prices go up again? The price at the pump needs to go down to $2/gallon and help improve this very lousy, need more jobs, economy! Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe and reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost, if possible. The price of fuel at the pump is too high! 12/22/2012!
KAR120CSII Champion Author Oregon Posts:3,182 Points:621,695 Joined:Apr 2010	Message Posted: Jun 24, 2012 3:07:18 AM Ignore KAR120CSII Report Abuse You don't say?
carloco75 Champion Author Richmond Posts:3,718 Points:601,255 Joined:Oct 2010	Message Posted: Jun 24, 2012 2:46:25 AM Ignore carloco75 Report Abuse Ahhh...Now I understand...
Blismo Champion Author Arizona Posts:2,144 Points:405,210 Joined:Feb 2012	Message Posted: Jun 24, 2012 2:36:13 AM Ignore Blismo Report Abuse nice
goldrose1 Champion Author Cleveland Posts:10,944 Points:1,926,515 Joined:Feb 2005	Message Posted: Jun 24, 2012 2:15:48 AM Ignore goldrose1 Report Abuse Time to enjoy some driving. Vacation? Maybe not.
kgbellman Champion Author Ann Arbor Posts:2,718 Points:732,815 Joined:Mar 2011	Message Posted: Jun 24, 2012 12:30:48 AM Ignore kgbellman Report Abuse Amazing that people are learning that lower demand with steady / higher supply = lower prices. I just wish the low demand wasn't because of bad economy.
5kvdave All-Star Author Los Angeles Posts:688 Points:350,000 Joined:May 2011	Message Posted: Jun 23, 2012 11:59:02 PM Ignore 5kvdave Report Abuse STILL WAY TOO HIGH!!!!!!
ED6 Champion Author Riverside Posts:9,489 Points:1,852,105 Joined:Jul 2007	Message Posted: Jun 23, 2012 11:58:12 PM Ignore ED6 Report Abuse Over supply.
MarkC08 All-Star Author Worcester Posts:663 Points:588,470 Joined:Nov 2008	Message Posted: Jun 23, 2012 11:57:50 PM Ignore MarkC08 Report Abuse OK
ScottE Champion Author Orange County Posts:4,352 Points:2,199,730 Joined:May 2002	Message Posted: Jun 23, 2012 11:56:07 PM Ignore ScottE Report Abuse Liers cheats and Politicians who don't regulate Speculators and Big oil execs will cheat us here soon enough.
ED6 Champion Author Riverside Posts:9,489 Points:1,852,105 Joined:Jul 2007	Message Posted: Jun 23, 2012 11:55:07 PM Ignore ED6 Report Abuse Keeping falling.
dchiou Champion Author San Jose Posts:2,826 Points:793,965 Joined:Feb 2007	Message Posted: Jun 23, 2012 11:55:06 PM Ignore dchiou Report Abuse I don't foresee prices at the current rate.
radiorumor Champion Author Texas Posts:2,817 Points:754,835 Joined:Feb 2011	Message Posted: Jun 23, 2012 11:54:50 PM Ignore radiorumor Report Abuse I’m not going to ask why they are pumping more. I’ll just enjoy the lower price at the pump.
goodbuy Champion Author Michigan Posts:7,673 Points:1,423,555 Joined:May 2005	Message Posted: Jun 23, 2012 11:54:45 PM Ignore goodbuy Report Abuse Don't care why, just keep falling.
YodaON Champion Author Ottawa Posts:2,937 Points:781,010 Joined:Jan 2011	Message Posted: Jun 23, 2012 11:49:14 PM Ignore YodaON Report Abuse last month they said they would rise all summer to record levels
Irish_Lacey Sophomore Author Miami Posts:213 Points:179,055 Joined:Mar 2012	Message Posted: Jun 23, 2012 11:48:13 PM Ignore Irish_Lacey Report Abuse only because it is an election year...
bcok Champion Author Los Angeles Posts:2,126 Points:1,544,495 Joined:Oct 2005	Message Posted: Jun 23, 2012 11:48:01 PM Ignore bcok Report Abuse Is it possssible for a downward trend for the long term? I think we all know it is not highly likely.
beachmanglen All-Star Author Tampa Posts:679 Points:497,100 Joined:Aug 2011	Message Posted: Jun 23, 2012 11:46:06 PM Ignore beachmanglen Report Abuse China's slowdown has a significant effect on world prices, as they are not buying as much oil.
straz Champion Author Pennsylvania Posts:1,708 Points:540,385 Joined:Jan 2007	Message Posted: Jun 23, 2012 11:45:58 PM Ignore straz Report Abuse keep going
firefly09 Champion Author San Diego Posts:2,497 Points:716,700 Joined:Mar 2009	Message Posted: Jun 23, 2012 11:44:50 PM Ignore firefly09 Report Abuse Prices need to be a lot lower.
dancygreen Champion Author Twin Cities Posts:2,068 Points:486,735 Joined:Sep 2011	Message Posted: Jun 23, 2012 11:44:50 PM Ignore dancygreen Report Abuse yeah sure
3mta3 All-Star Author Michigan Posts:830 Points:1,004,115 Joined:Jul 2004	Message Posted: Jun 23, 2012 11:44:05 PM Ignore 3mta3 Report Abuse Good, now prices will do nothing but go down!
GLM4205 Champion Author Toledo Posts:4,062 Points:801,270 Joined:Dec 2010	Message Posted: Jun 23, 2012 11:44:05 PM Ignore GLM4205 Report Abuse The terrible world economic situation also contributes to this pricing too. Obviously the speculators are not being bullish on oil at this time.
nimpy Champion Author Indianapolis Posts:8,140 Points:1,702,080 Joined:Oct 2007	Message Posted: Jun 23, 2012 11:43:28 PM Ignore nimpy Report Abuse I agree the speculators will screw things up
silverfoxv65 Champion Author Michigan Posts:4,485 Points:1,231,025 Joined:Sep 2009	Message Posted: Jun 23, 2012 11:42:09 PM Ignore silverfoxv65 Report Abuse Yea well i am sure the speculators will screw that up.
DarthDadJr Champion Author Virginia Posts:7,317 Points:1,522,395 Joined:Jul 2008	Message Posted: Jun 23, 2012 11:41:36 PM Ignore DarthDadJr Report Abuse It's nice...as long as it lasts.
kulwicki7 All-Star Author Virginia Posts:638 Points:268,845 Joined:Sep 2005	Message Posted: Jun 23, 2012 11:39:47 PM Ignore kulwicki7 Report Abuse ok
bonzoonfmb Champion Author Florida Posts:1,787 Points:645,560 Joined:Feb 2010	Message Posted: Jun 23, 2012 11:39:12 PM Ignore bonzoonfmb Report Abuse Gas prices still too high.
abcdMA Champion Author Worcester Posts:7,927 Points:1,575,955 Joined:Nov 2008	Message Posted: Jun 23, 2012 11:37:28 PM Ignore abcdMA Report Abuse so oil is governed by supply and demand
AnObserver Champion Author New Jersey Posts:8,364 Points:2,259,730 Joined:Sep 2005	Message Posted: Jun 23, 2012 11:37:05 PM Ignore AnObserver Report Abuse Sounds good to me
crewsing Veteran Author Virginia Posts:391 Points:85,030 Joined:Feb 2012	Message Posted: Jun 23, 2012 11:36:49 PM Ignore crewsing Report Abuse hip hip hooray!
tampacrvdriver Champion Author Tampa Posts:3,361 Points:713,410 Joined:May 2011	Message Posted: Jun 23, 2012 11:36:04 PM Ignore tampacrvdriver Report Abuse good
gilfarm Champion Author Alabama Posts:6,801 Points:1,949,815 Joined:Sep 2005	Message Posted: Jun 23, 2012 11:33:33 PM Ignore gilfarm Report Abuse Come on down!
BoerneWatch Champion Author San Antonio Posts:15,546 Points:2,454,915 Joined:Oct 2005	Message Posted: Jun 23, 2012 11:33:06 PM Ignore BoerneWatch Report Abuse What happened to peak oil being 87 million barrels per day? Seems like peak oil eventually goes up with the price of oil.
jcpatriots Champion Author Massachusetts Posts:3,903 Points:600,320 Joined:Sep 2011	Message Posted: Jun 23, 2012 11:32:17 PM Ignore jcpatriots Report Abuse Can't wait for those prices to keep plummeting. :D
calripken_8 Champion Author Virginia Posts:2,906 Points:660,165 Joined:Jun 2011	Message Posted: Jun 23, 2012 11:31:54 PM Ignore calripken_8 Report Abuse I want it under $2/gallon
mobil1MN All-Star Author Minnesota Posts:664 Points:1,294,635 Joined:Sep 2007	Message Posted: Jun 23, 2012 11:31:50 PM Ignore mobil1MN Report Abuse ok
mstearno Champion Author Dayton Posts:8,071 Points:1,732,210 Joined:Jan 2008	Message Posted: Jun 23, 2012 11:30:31 PM Ignore mstearno Report Abuse supply and demand?
livedream Champion Author Michigan Posts:3,690 Points:756,035 Joined:Mar 2011	Message Posted: Jun 23, 2012 11:30:23 PM Ignore livedream Report Abuse This is a good thing for us.
sdchris Champion Author San Diego Posts:2,546 Points:736,650 Joined:Jun 2008	Message Posted: Jun 23, 2012 11:30:01 PM Ignore sdchris Report Abuse ok
menagerie1013 Champion Author San Diego Posts:2,365 Points:690,740 Joined:Apr 2011	Message Posted: Jun 23, 2012 11:30:01 PM Ignore menagerie1013 Report Abuse I'll be happy if prices continue to drop.
danlanman Champion Author North Carolina Posts:3,337 Points:723,435 Joined:May 2011	Message Posted: Jun 23, 2012 11:29:29 PM Ignore danlanman Report Abuse keep going lower
ROSYMI Champion Author Michigan Posts:1,028 Points:369,500 Joined:Nov 2011	Message Posted: Jun 23, 2012 11:29:07 PM Ignore ROSYMI Report Abuse you would think the gas would go down more
philthethrill Champion Author Hamilton Posts:9,684 Points:1,605,065 Joined:Nov 2008	Message Posted: Jun 23, 2012 11:26:17 PM Ignore philthethrill Report Abuse drop the pump prices
DutchTreatMI Champion Author Grand Rapids Posts:3,315 Points:752,665 Joined:Mar 2011	Message Posted: Jun 23, 2012 11:25:02 PM Ignore DutchTreatMI Report Abuse With as much as oil has dropped per barrel the price at the pump should be quite a bit lower.
Zeke33 Champion Author New Hampshire Posts:5,576 Points:1,616,895 Joined:Sep 2005	Message Posted: Jun 23, 2012 11:21:13 PM Ignore Zeke33 Report Abuse The terrible world economic situation also contributes to this pricing too. Obviously the speculators are not being bullish on oil at this time.
drobbbb Champion Author Maryland Posts:3,480 Points:813,210 Joined:Dec 2010	Message Posted: Jun 23, 2012 11:17:32 PM Ignore drobbbb Report Abuse ok
Taurus1 Champion Author Ohio Posts:3,135 Points:1,675,450 Joined:Apr 2006	Message Posted: Jun 23, 2012 11:15:31 PM Ignore Taurus1 Report Abuse ok