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Oil Prices Not Going Anywhere

Tom Kloza of Speaking of Oil sees April oil and gas prices as a snooze.

Sure the trading could be wild, but he does not see that same step-ladder of $2.50, $3, $3.50, $4 for gas prices this year. Global demand is generally low in April. Here we are @ a little over $2/gal.

As for supply, here’s his scoop

Consider this little statistical nugget. The amount of crude oil sitting on U.S. soil – - in traditional storage and in the subterranean caverns of the Strategic Petroleum Reserve – - currently stands at 1.066-billion bbl, or some 55-million bbl more than last year. What’s more, there is about 128-million bbl more crude when compared to late March 2004.

His long-range prediction

I think that the average American motorist will probably save anywhere from $75-$100 each month when July and August 2009 finally roll around. July gas prices averaged $4.062 gal in 2008 and August numbers were $3.766 gal. If you calculate that an average motorist uses 50 gallons per month, you can do the math and come up with a price forecast in the $2.00-$2.25 gal range.

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