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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:388,335 Joined:Dec 2011	Message Posted: Jun 24, 2012 5:37:26 PM Ignore GOBUTLER Report Abuse Ok
comprof Champion Author Houston Posts:6,844 Points:1,353,825 Joined:Jul 2009	Message Posted: Jun 24, 2012 5:24:38 AM Ignore comprof Report Abuse Old news
tomok Champion Author Portland Posts:32,954 Points:2,343,560 Joined:Aug 2006	Message Posted: Jun 24, 2012 4:10:16 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:3,167 Points:618,645 Joined:Apr 2010	Message Posted: Jun 24, 2012 12:07:18 AM Ignore KAR120CSII Report Abuse You don't say?
carloco75 Champion Author Richmond Posts:3,706 Points:598,415 Joined:Oct 2010	Message Posted: Jun 23, 2012 11:46:25 PM Ignore carloco75 Report Abuse Ahhh...Now I understand...
Blismo Champion Author Arizona Posts:2,129 Points:402,285 Joined:Feb 2012	Message Posted: Jun 23, 2012 11:36:13 PM Ignore Blismo Report Abuse nice
goldrose1 Champion Author Cleveland Posts:10,926 Points:1,922,555 Joined:Feb 2005	Message Posted: Jun 23, 2012 11:15:48 PM Ignore goldrose1 Report Abuse Time to enjoy some driving. Vacation? Maybe not.
kgbellman Champion Author Ann Arbor Posts:2,703 Points:729,890 Joined:Mar 2011	Message Posted: Jun 23, 2012 9:30:48 PM 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 8:59:02 PM Ignore 5kvdave Report Abuse STILL WAY TOO HIGH!!!!!!
ED6 Champion Author Riverside Posts:9,469 Points:1,848,205 Joined:Jul 2007	Message Posted: Jun 23, 2012 8:58:12 PM Ignore ED6 Report Abuse Over supply.
MarkC08 All-Star Author Worcester Posts:663 Points:586,445 Joined:Nov 2008	Message Posted: Jun 23, 2012 8:57:50 PM Ignore MarkC08 Report Abuse OK
ScottE Champion Author Orange County Posts:4,352 Points:2,196,880 Joined:May 2002	Message Posted: Jun 23, 2012 8:56:07 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:9,469 Points:1,848,205 Joined:Jul 2007	Message Posted: Jun 23, 2012 8:55:07 PM Ignore ED6 Report Abuse Keeping falling.
dchiou Champion Author San Jose Posts:2,816 Points:791,565 Joined:Feb 2007	Message Posted: Jun 23, 2012 8:55:06 PM Ignore dchiou Report Abuse I don't foresee prices at the current rate.
radiorumor Champion Author Texas Posts:2,802 Points:751,910 Joined:Feb 2011	Message Posted: Jun 23, 2012 8:54:50 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:7,658 Points:1,419,880 Joined:May 2005	Message Posted: Jun 23, 2012 8:54:45 PM Ignore goodbuy Report Abuse Don't care why, just keep falling.
YodaON Champion Author Ottawa Posts:2,922 Points:778,085 Joined:Jan 2011	Message Posted: Jun 23, 2012 8:49:14 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 8:48:13 PM Ignore Irish_Lacey Report Abuse only because it is an election year...
bcok Champion Author Los Angeles Posts:2,111 Points:1,541,470 Joined:Oct 2005	Message Posted: Jun 23, 2012 8:48:01 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:674 Points:494,525 Joined:Aug 2011	Message Posted: Jun 23, 2012 8:46:06 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 8:45:58 PM Ignore straz Report Abuse keep going
firefly09 Champion Author San Diego Posts:2,493 Points:715,745 Joined:Mar 2009	Message Posted: Jun 23, 2012 8:44:50 PM Ignore firefly09 Report Abuse Prices need to be a lot lower.
dancygreen Champion Author Twin Cities Posts:2,053 Points:482,935 Joined:Sep 2011	Message Posted: Jun 23, 2012 8:44:50 PM Ignore dancygreen Report Abuse yeah sure
3mta3 All-Star Author Michigan Posts:826 Points:1,001,735 Joined:Jul 2004	Message Posted: Jun 23, 2012 8:44:05 PM Ignore 3mta3 Report Abuse Good, now prices will do nothing but go down!
GLM4205 Champion Author Toledo Posts:4,042 Points:798,120 Joined:Dec 2010	Message Posted: Jun 23, 2012 8:44:05 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:8,125 Points:1,699,155 Joined:Oct 2007	Message Posted: Jun 23, 2012 8:43:28 PM Ignore nimpy Report Abuse I agree the speculators will screw things up
silverfoxv65 Champion Author Michigan Posts:4,470 Points:1,227,950 Joined:Sep 2009	Message Posted: Jun 23, 2012 8:42:09 PM Ignore silverfoxv65 Report Abuse Yea well i am sure the speculators will screw that up.
DarthDadJr Champion Author Virginia Posts:7,302 Points:1,519,470 Joined:Jul 2008	Message Posted: Jun 23, 2012 8:41:36 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 8:39:47 PM Ignore kulwicki7 Report Abuse ok
bonzoonfmb Champion Author Florida Posts:1,772 Points:642,185 Joined:Feb 2010	Message Posted: Jun 23, 2012 8:39:12 PM Ignore bonzoonfmb Report Abuse Gas prices still too high.
abcdMA Champion Author Worcester Posts:7,912 Points:1,573,030 Joined:Nov 2008	Message Posted: Jun 23, 2012 8:37:28 PM Ignore abcdMA Report Abuse so oil is governed by supply and demand
AnObserver Champion Author New Jersey Posts:8,346 Points:2,255,995 Joined:Sep 2005	Message Posted: Jun 23, 2012 8:37:05 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 8:36:49 PM Ignore crewsing Report Abuse hip hip hooray!
tampacrvdriver Champion Author Tampa Posts:3,346 Points:710,485 Joined:May 2011	Message Posted: Jun 23, 2012 8:36:04 PM Ignore tampacrvdriver Report Abuse good
gilfarm Champion Author Alabama Posts:6,781 Points:1,945,915 Joined:Sep 2005	Message Posted: Jun 23, 2012 8:33:33 PM Ignore gilfarm Report Abuse Come on down!
BoerneWatch Champion Author San Antonio Posts:15,531 Points:2,451,990 Joined:Oct 2005	Message Posted: Jun 23, 2012 8:33:06 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:3,898 Points:597,095 Joined:Sep 2011	Message Posted: Jun 23, 2012 8:32:17 PM Ignore jcpatriots Report Abuse Can't wait for those prices to keep plummeting. :D
calripken_8 Champion Author Virginia Posts:2,891 Points:657,240 Joined:Jun 2011	Message Posted: Jun 23, 2012 8:31:54 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 8:31:50 PM Ignore mobil1MN Report Abuse ok
mstearno Champion Author Dayton Posts:8,055 Points:1,729,430 Joined:Jan 2008	Message Posted: Jun 23, 2012 8:30:31 PM Ignore mstearno Report Abuse supply and demand?
livedream Champion Author Michigan Posts:3,674 Points:753,110 Joined:Mar 2011	Message Posted: Jun 23, 2012 8:30:23 PM Ignore livedream Report Abuse This is a good thing for us.
sdchris Champion Author San Diego Posts:2,546 Points:735,900 Joined:Jun 2008	Message Posted: Jun 23, 2012 8:30:01 PM Ignore sdchris Report Abuse ok
menagerie1013 Champion Author San Diego Posts:2,365 Points:688,240 Joined:Apr 2011	Message Posted: Jun 23, 2012 8:30:01 PM Ignore menagerie1013 Report Abuse I'll be happy if prices continue to drop.
danlanman Champion Author North Carolina Posts:3,322 Points:720,510 Joined:May 2011	Message Posted: Jun 23, 2012 8:29:29 PM Ignore danlanman Report Abuse keep going lower
ROSYMI Champion Author Michigan Posts:1,028 Points:366,400 Joined:Nov 2011	Message Posted: Jun 23, 2012 8:29:07 PM Ignore ROSYMI Report Abuse you would think the gas would go down more
philthethrill Champion Author Hamilton Posts:9,662 Points:1,602,140 Joined:Nov 2008	Message Posted: Jun 23, 2012 8:26:17 PM Ignore philthethrill Report Abuse drop the pump prices
DutchTreatMI Champion Author Grand Rapids Posts:3,300 Points:749,290 Joined:Mar 2011	Message Posted: Jun 23, 2012 8:25:02 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:5,564 Points:1,613,955 Joined:Sep 2005	Message Posted: Jun 23, 2012 8:21:13 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:3,466 Points:810,380 Joined:Dec 2010	Message Posted: Jun 23, 2012 8:17:32 PM Ignore drobbbb Report Abuse ok
Taurus1 Champion Author Ohio Posts:3,120 Points:1,671,775 Joined:Apr 2006	Message Posted: Jun 23, 2012 8:15:31 PM Ignore Taurus1 Report Abuse ok