Brak wants to know, "Is $2.00 a gallon forseeable"?

Question

Oil is dropping, demand is dropping, we keep finding new supply.

People are going greener and the economy is picking up again.

people doubted it in 2005 but it happened at the end of 2006.

I think it can happen again.

Answer 1

Maybe, but I'm pessimistic on the issue.

If it does, it's not going to be anytime soon, at least a few years.

Answer 2

Sometime, yes.

We might be less dependent on foreign oil by the end of next year and it will drop around $2.00 a gallon.

Answer 3

I do not see it getting below $3 ever  $4,$5, and up ..It is gold every one wants it..Sell your gas guzzler now..Keep it and pay someone to tow it away for junk

Answer 4

I'm afaid 2 bucks is virtually impossible though I wish otherwise.

   For one thing new supply really hasn't been "found" there are sources of oil that have been known about for quite sometime but restrictions still keep us from tapping that supply.  At some point in the near future these drilling bans will likely be lifted, and you will see some coal to oil conversion begining.  Unfortunately, by the time this occurs other factors will stop a decrease in fuel prices.

    Demand is actually on the rise and shows no signs of slowing.  China and India are consuming fossil fuels at an unprecedented rate with no expectations of a slow down.  The large populations of these countries combined with there rapid growth of industry and exposure to consumerisim will place them in a position to continue to shift the price of fuel in the wrong direction.

    As a result of overlending via mortgage companies inflating the housing dollar, Gov't bailouts of said companies (which never should have occured), excessive credit lending, increased minimum wage, a rapidly growing national debt to to many foolish governmental policies, an artificially inflated economy through other forms of Gov't bailouts for individuals,  inflation is skyrocketing the value of the dollar is collapsing and incomes for everything except the lowest paid employees are staying stagnant.  In short we are making the same amount of cash and it is worth less than it used to be so it will take more of that cash to buy the same goods.  

Gas will never fall that low again until it becomes an obsolete fuel.

Answer 5

I don't see it ever being under 3/gallon again.  Even though demand may be dropping (albeit very little) and oil is dropping I think we will not get back to levels we say 2 years ago.

I also think a lower demand will continue to push oil prices and gas prices up.  Oil will eventually become a luxury commodity demanding a higher price.