Posted on 04/07/2015 8:27:21 AM PDT by Perkinsbob54
ROSWELL – Gasoline prices in New Mexico could drop to as low as $1.60 a gallon this year as the United States and the Organization of Petroleum Exporting Countries engage in an outgoing crude oil price war, an expert told the New Mexico Landmen’s Association on March 27. Dr. Daniel Fine, associate director of the New Mexico Center for Energy Policy at New Mexico Institute of Mining and Technology, said at the landmen’s association’s monthly meeting recently that crude oil storage in the United States is at a near maximum, meaning it will be some time before crude oil prices rebound.
While the price war is likely to result in a “stalemate” between U.S. oil producers and OPEC members such as Saudi Arabia, Fine said crude oil consumers, particularly motorists, are likely to experience unusually low prices at the pumps for months to come.
Fine predicted gasoline prices in the Albuquerque market for the remainder of 2015 would rise slightly to $2.35 a gallon before leveling off somewhere between $2.35 and $1.65 per gallon. He said gasoline prices in Albuquerque could drop to as low as $1.60 a gallon.
“I would use that as the bottom range,” Fine told the Daily Record after his hour-long address to the landmen’s meeting at the Roswell Country Club. “I can’t say how soon. That will depend on the events now in front of us.”
(Excerpt) Read more at cibolabeacon.com ...
Soft market demand and excess supplies of crude oil are to credit, or to blame, for the low gasoline prices, Fine said.
“Demand is not catching up,” he said. “You have a big imbalance. (OPEC) is not producing according to price. They’re not cutting back.”
Fine said at the start of his speech he had come to the landmen’s meeting “to present some realism.”
“I don’t carry good news, but I carry a guidance based on some realism,” he said.
I look forward to $1.60 or less for a gallon of gas....that would be a boom for the economy!!!
Not true...gas was as low as $1.48 or so in Oklahoma City a few months back.
Read an article, sorry, don’t have a link, that said people are saving their gas savings, not spending it as economists expected.
This is a good thing.
Great! That means that prices in California, after all the state’s gas/road taxes and the costs associated with the special summer blend gas, will put us at just above $3......
Isn’t it wonderful living in a one party Democrat state?
So this is one of the “Experts” who Rush pointed out was completely blindsided by the current oil price.
Hard to take this piece serious after reading that.....
It would be a boom to my 160 mile daily round trip commute. :-D
$1.00 a gallon would be better!!!
what good are low prices if you do not have money??
A bargain is no bargain if you can’t afford it.
Yes but aren’t you proud of your state for being a leader in “Cap and Tax” ?
Here in Indiana it’s back to 2 bucks after a brief run-up to the 2.40 range.
I filled up 3 of my 4 cars this weekend.
In the US, if you don’t have money, it just means you don’t want to have money.
I’m using my gas savings to pay off all debt, including my mortgage. and with my 160 mile daily commute, it’s a sizable chunk of change.
I predict it will rise again to $4.00 before the end of dear leader’s term
There ya go. The point of the article was that a big buying boom was expected and people, like you for example, are not buying stuff.
How much did “cap and trade” taxes increase your gas prices? The predictions were all over the map, but I’m curious what actually happened.
The price of crude won’t slip and slide until fall at the earliest, IMHO — there is too much understandable anxiety about the possibility of a supply interruption due to Iran (Hormuz, Red Sea). After the summer travel season is up — and people of a certain demographic remember those end-of-summer “gas wars” — and fuel oil supplies are laid in (and watch for increases in storage capacity for fuel oil in the months intervening between now and then) the downward pressure on prices will be substantial. We’ll see downward dips all through the winter, and we’ll be getting used to sub-$2 gas by next spring.
Assuming the whole ****-house doesn’t go up in flames, of course.
It’s interesting that Iran is using its proxies to battle ISIS in Iraq, after more than a year of having its proxies largely ignore ISIS in Syria, and both activities benefit their arch-enemies the Saudis — all the while the Saudis have been putting together an ambitious multinational military effort to expel Iranian influence from Arabia.
It’s also interesting how there are still those who claim ISIS is some kind of creature of the House of Saud, or that this is entirely a Shiite-vs-Sunni war. Jihad is jihad — jihadists will take help where its offered, and supporters of jihad will offer help wherever it is found and doesn’t conflict with other interests. The House of Saud is a old cardboard boxes full of, uh, cats, by comparison to the wide-open jihadist murderers roaming Africa, Asia, the Middle East, and other places across the planet, and they know it.
Here in California the Democrats will make up any reduction in fuel costs with increased taxation of the product. Not to worry consumers get a break, ‘cause the Democrats are in charge.
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