Gas could fall to $2 if Congress acts, analysts say

[gokuDX7 2,871]

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."

http://www.marketwatch.com/news/story/gas-could-fall-2-if/story.aspx?guid={2673C102-68E0-41D9-9C9A-10EE2E723948}&dist=msr_13

Not sure if this will work but it would be nice to see gas prices drop to $2 or less again. I miss filling my take up with a $20.

[Ladywriter 7,783]

good article(s) I'm inclined to agree with

"If the speculation is forced out of the U.S. exchanges, it'll simply show up on other exchanges that are OTC like the ICE, or new exchanges will pop up to allow for the spec trades to continue functioning."

and

The creation of a comprehensive U.S. energy policy that tackles issues of increasing domestic supply and reining in consumer demand via conservation should be Congress' focus

We need to get off the oil tit as completely as possible. It is a finite resource and everybody is fighting over whats left. It's not going to get any better. Even if things ease back for a little while what is happening now will happen again.

Proposed US drilling is not a good idea. Any new drilling will take about 3 years before what they manage to pump out of the ground reaches the gas pump. So ya really have to ask wtf is the point then? Well, there really isn't one unless you're an oil company trying to make billions in profit like Exxon. It does not help consumers.

There are enough natural energies (wind solar wave) to power the grid forever! Again you ask yourself why aren't we throwing tons of cash at these projects and implementing clean energy as fast as we fuckin can?! Well, let us not forget that for his entire first term in office and then some GW denied global warming. We have an oil dictator holding the highest office in our country. He's not going to turn his back on what keeps him and his buddies fat and rich, ever. This is why he proposes more drilling.

You may have noticed I did not put ethanol in with natural energies. At the moment it costs more in energy to produce ethanol then what ethanol is worth. Also it is largely made from corn; food as fuel is NEVER a good idea. With the current flooding issues in this country the price of corn is going to go way up because again we'll be dealing with supply and demand issues. Corn is a staple and in just about all prepackaged foods you eat.

[DeathscytheX 9,732]

If congress doesn't act it won't matter anyways. Eventually it will become the next .com crash, and not only will gas be $2 a gallon again, but everyone that had been driving it up will be flat broke... which is what they deserve.

[Sledgstone 8,672]

Yeah, I can see see this being the Oil crash much like the recent housing market crash. Everyone keeps buying into oil stock and oil futures like mad, but eventually somethings going to give. Like the US government declaring Opec a terrorist support group and start world war 3. Seriously tho I think the oil bubble will burst after people start rioting this winter when it costs everyone $4,000-$8,000 to heat their homes for a single winter.

Heres an example of speculation bullshit. The president of OPEC says prices of oil could go up to $170 a barrel this summer.. and just like that oil jumps $5 today:

http://www.npr.org/templates/story/story.php?storyId=91934892